Misuse of Company Credit Cards

[Dawg12]

What is the name of your state? TN
I have a former employee that before he left misused his company issued credit card to the tune of $900. We were able to catch half of the charges and take about $400 out of his last paycheck. However, upon receiving the next months statement we found the other charges. What legal recourse should we take? All recent attempts to contact him via registered mail to his previous address (his parents home)have been returned.

THANKS!

 

[Beth3]

I'm not familiar with TN reg's but in all actuality, it was probably unlawful for you to withhold the $400 out of his last paycheck. Most States expressly prohibit employers from making any payroll deductions (yes, even for theft) without the employee's written authorization. Under these circumstances, chances are he's not going to be filing any complaints with TN's DOL however. He's more interested in flying under the radar.

Your option is to deal with this as you would with any other entity who owed your company money and refused to pay - go to court and get a judgement against him. As the amount of money is small, you can pursue this in small claims court. In this instance, you may also file criminal charges with the police/DA as well.

 

[Dawg12]

Beth,

I should have been more clear...when we withheld the money, it was at his request. What type of prosecution would this be covered under? Is it a misdemeanor or felony to misuse and not repay company funds?

 

[Beth3]

My area isn't criminal law but it's my understanding that whether theft is a misdemeanor or a felony depends upon the amount of money stolen (and in other situations, whether there was a weapon involved, assault, etc.) I can only assume this would be a misdemeanor. In any event, you do not have to worry what the criminal charge would be - that's up to the district attorney.

All you have to do is contact the police and file the charge. You know, it's quite possible that if the DA decides to get involved, it could take care of your repayment problem. The DA might agree to dismiss criminal charges if he or she makes restitution - in which case, you wouldn't have to bother pursuing repayment civilly.

 

[JETX]

Suggestion:
Before you go forward with any criminal complaint, send the former employee one more letter. Only this time, send a copy certified and one by regular first-class. Be sure to note in the letter that you have sent it both ways.

Politely ask that he contact you within the next 7 days to arrange repayment of the charges, or that you will proceed with all applicable criminal charges and civil action.

Then, if he doesn't contact you within the alloted time, do it.