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  1. #1
    Wyldrush is offline Member
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    Employee damages company vechile. Can employer charge him half insurance deductible

    What is the name of your state? Florida

    MY company is big on making sure employees pay for half of the $1000 insurance deductible if they have a car accident and are considered at fault. Is this legal?

    The company does state in their new hire packet when going over rules you will be required to pay the deductible and you need to sign off on it, but not sure if this is legal since co chooses to carry a $1000 deductible making employees pay for $500 of damage.

    I just had an employee get into an a small accident (1000 damages on a delivery truck) and he needs to pay $500 in which they are deducting it over 2 paychecks and keep in mind he only earns $500 a week before taxes so that is more than half his take home check. (However the large deduction is because he is leaving on Jan 31 and already gave notice or it be around $50 a week)
  2. #2
    ecmst12 is offline Senior Member
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    You can make him pay the whole deductible if you want, but you can't deduct it from his check without prior written authorization from him.
  3. #3
    Beth3 is offline Senior Member
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    Wyldrush, you/your company shouldo check with an employment law attorney in your State. Making payroll deductions without the employee's express written authorization is almost certainly prohibited. Additionally, some States prohibit holding employees financially accountable for "quality defects" (broadly defined) so everything the company is doing may be unlawful.
    A person, who is nice to you, but rude to a waiter, is not a nice person. (This is very important. Pay attention. It never fails.)
  4. #4
    Wyldrush is offline Member
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    The company makes you sign a document stating it will be payroll deducted but I am leaning more to the fact like mentioned, is it still LEGAL in Florida.
    What type of attorney would you recommend i call.
  5. #5
    eerelations is online now Senior Member
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    If you signed a document agreeing to have the deductible (or any part thereof) deducted from your pay, then it's legal for your employer to deduct the amount you agreed to from your pay.
  6. #6
    ArmyRetCW3 is offline Member
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    With respect to nonexempt employees, an employer may not lawfully require an employee to pay for an expense of the employer’s business if doing so reduces the employee’s pay below any statutorily-required minimum wage or overtime premium that is due, because employers must pay all statutorily-required minimum wage and overtime premium finally and unconditionally, or “free and clear.” 29 C.F.R. § 531.35 -

    Ref; OL March 10, 2006 FLSA2006-7
  7. #7
    Wyldrush is offline Member
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    Amy..thanks for that statute. IS THIS A federal statue or Florida state..

    Also due to the deduction, his take home check for 40hrs was around $125. He makes $500 a week for 40hrs of work. So if I deduct $250 from base , that is $250 a week for 40hrs which is $6.25hr. I know that is right around min wage.
  8. #8
    ArmyRetCW3 is offline Member
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    My response is based on federal law..
  9. #9
    Wyldrush is offline Member
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    I would like to ask you as well when doing the deductions, should your paycheck be taxed before or after the deduction. I know they deduct the $250 from his NET INCOME which is why he is taking home only $125 this week and next week.
    Generally the company would take out $50 a week for 10 weeks but this employee let the company know around Dec 20th that Jan 31st will be his last day so they wanted to make sure they collect all the money before he leaves.

    I just feel it is wrong to deduct damages like that. it is acalled an accident for a reason and feel the company can take a lower deductible.
  10. #10
    eerelations is online now Senior Member
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    Deducting from the net is prabably the correct way to do it.

    Just because you think something is "wrong" doesn't mean it's illegal. The practice you're describing is legal. If your coworker doesn't like it, he shouldn't have signed a document agreeing with it in the first place.

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