Deducting stolen funds from paychecks

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in Firing,Human Resources

Q. My company terminated an employee suspected of stealing from her cash drawer. May we subtract the missing amount from her final paycheck?

A.
Maybe. Generally, to recoup cash shortages from an employee’s final paycheck, an employer must have the employee’s advance written authorization to do so. However, no authorization is necessary if criminal process has been issued against the employee, the employee has been indicted, or the employee has been arrested as a result of the cash shortage.

Deductions for cash shortages concerning non-terminated employees are handled differently and are beyond the scope of this answer.

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