By: Jay Mittelman
Can employers make employees, who come up short in their tills, repay the amounts they’re short? And if they don’t, can we deduct the shortage from their pay? Can you fine employees?
Answers: These two questions deal with the same subject: Does the employer have the right to discipline an employee by levying fines or deducting amounts from the employee’s pay?
This is quite commonly done in retail stores, service stations, restaurants and banks, businesses where employees are responsible for their own tills or drawers in tills.
If you want to force an employee to repay losses (by deducting from pay), or if you want to discipline an employee by levying a fine (or deducting a fine from pay), consider the following:
Without such a system, how do you positively prove which employee is responsible for a loss?
Important: If you want to be able to deduct losses from an employee’s pay, be sure to:
You should know, this is a very tricky issue, so before you withhold money from an employee’s check for amounts they owe you, proceed with caution. You can’t go wrong by checking with your professional adviser.