When Can You Deduct from an Exempt Employee’s Pay?

The Fair Labor Standards Act (FLSA) requires that all employees be paid at least minimum wage for all hours worked as well as pay of at least one and one half times their regular rate of pay for all overtime hours worked over 40 hours in a workweOLYMPUS DIGITAL CAMERAek. Employees who are classified as exempt are not subject to these minimum wage or overtime requirements.

In order to be classified as exempt, the employee must be paid on a salary basis of at least $455 per week. In addition, the employee’s work must meet certain duties tests as established by the Department of Labor (DOL). You can read more about this here.

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Can You Charge an Employee For Making Mistakes?

silhouettes-68483_1280If your business suffers some economic damage due to an employee mistake, you generally cannot expect the person to pay for the damage, according to the laws of most states.

That is, unless the error was attributable to gross negligence or a patently illegal act.

Even if you think one of these circumstances applies, tread carefully, since it can be hard to prove.

 

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Fired Employee Owes Company Money

dollar-653241_1280Q. I fired an employee for violating company rules, one of which resulted in the employee owing the company money.  I withheld the employee’s last paycheck until the money is paid back.  Now the employee has gotten a lawyer and is threatening to sue to get the paycheck.  Do I have to give the employee the paycheck with no guarantee that I will ever get the money back?

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