Q. I own a construction company. We require all employees to wear a company shirt. If an employee does not wear a company shirt, he or she is assessed a $25 per day penalty, which is deducted from the next paycheck. Is this penalty legal?
A. It depends. While disciplinary deductions from pay are allowed under federal wage-and-hour laws, Ohio’s wage payment statute (Ohio Rev. Code sec. 4113.15) permits deductions from an employee’s wages only for certain specific purposes:
- The purchase of U.S. savings bonds or corporate stocks or bonds
- A charitable contribution
- Deposits to a credit union savings or other regular savings program
- Repayment of a loan or other obligation
- Other deductions authorized by the employee.
In this case, it is unclear whether the employee authorized the deduction. At a minimum, I would want to see a signed, written authorization in which the employee certifies that he or ...(register to read more)