• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Company charging to keep job.

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

1doc1savage1

Junior Member
What is the name of your state (only U.S. law)? Ohio

My brother in law works for a large national trucking company, as a dispatcher. Recently they have demanded that he pay (after payroll, and after taxes), 10% of his wage to the company, in order to keep his job. Is this legal? Is it legal with a contract agreement? I assume he wouldn't be dumb enough to sign one.

The fact that they are seeking this money AFTER he is taxed makes it seem really slimey.

I don't know if this has any bearing, but he is not a union employee. I doubt the union would agree to this sort of garbage.What is the name of your state (only U.S. law)?
 


pattytx

Senior Member
Kickbacks are against the law. This is also embezzlement just waiting to happen. As a payroll professional for many years, I could see the technical way of diverting these funds into some employee's personal account without the employee being aware of where they went.

The employer can be reported to the federal Dept. of Labor and the regulatory agency that oversees the industry.

Since this is a large national company, I doubt very seriously that the corporate office would be stupid enough to condone this type of blatantly illegal action. Where did this requirement come from?
 
Last edited:

1doc1savage1

Junior Member
Legal extortion

This is the reply I recieved from the WHD.

The Fair Labor Standards Act (FLSA) does not prohibit pay cuts or demotions. However, an employee's pay cut cannot take their pay below the federal minimum wage of $6.55 per hour. Your issue may fall under an employment law subject known as employment- at- will. This means that: under most state employment laws an employer has the right to place demands and restrictions upon an employee, and the employee or the employer can terminate the employment agreement without notice or reason. Union members should speak to their union representatives. U.S. Department of Labor regulations do not address this issue. If your state has a law covering this issue, your State Department of Labor office is the best resource to help you with state employment laws.

On the pratical side there is nothing anyone can do about this. It is immoral, it is corrupt, but that's capitalism!

Thanks for your reply, I will close this thread in 24 hours. There is no battle to be fought here.
 
Last edited:

j991

Member
It is illegal. An employer can either demote, or fire the employee, but cannot demand that the employee return pay unless the employer can show that the employee did not earn the monies.
 

TinkerBelleLuvr

Senior Member
Are they saying that they will be REDUCING everyone's pay by 10% to stay employed?

Or are they actually extorting employees? Did this come as a memo? If so, have him take it to an employment attorney.
 

cbg

I'm a Northern Girl
Ginny's is an important question.

It is legal for the employer to say, Going forward, you will be earning $90 instead of $100.

It is not legal for the employer to say, "You have to pay me $10 if you want to keep your job".
 

TinkerBelleLuvr

Senior Member
Only reason I ask is that I find it hard to believe that a national firm would go for the extortion route. It can be someone misunderstanding HOW something is going to work.

Many companies are either reducing pay or reducing hours to keep everyone employed.
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top