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Sometimes you can require repayment out of last check

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in Compensation and Benefits,Human Resources

Do you offer a store credit card to your employees? If so, you likely want any balance due repaid if the employee quits or is fired.

You may be able to get the employee’s agreement to repay the balance on termination out of his or her vacation or sick account balance. As long as the result isn’t reducing her pay below minimum wage, doing so is fine.

Recent case: Carrie sued her former employer, Costco, over deductions the company made from her final paycheck. She alleged that despite her written agreement to repay any balance out of her last check, doing so violated the Fair Labor Standards Act.

The court disagreed. It pointed out that even with the deduction, she earned more than minimum wage for the last hours worked. Her case was dismissed. (Ward v. Costco, No. 11-56757, 9th Cir., 2014)

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