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  1. #1
    Wyldrush is offline Member
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    Angry My employer says I need to pay for merchandise shortages

    What is the name of your state? Florida

    I am a manager for a large furniture retailer. We generally have the store merchandise audited on a quarterly but of course the corporation falls behind on audits and sometimes we go over 6 months without an audit.
    Now the main question I have is... In the last 4 years I have never been short on an audit, generally I have several thousand dollars in overrages and I do not recieve compensation back for that, but rather the merchandise is added to my inventor. NOw I am short and the company wants me to pay for the shortages which is over $4,000. They use a formula of adding your overages and shortages. If I am over more than short, I pay nothing and get no money back. This time after over 10 audits I am now short more than I am over and the owner of the company wants to charge me a percentage. I feel this is illegal despite the company makes you sign a contract at time of promotion to store manager that one of the things your responsible for is shortage of merchandise based on audit outcomes.

    Can my employer deduct the loss from my check? If they can, can I claim this as a type of loss on my income taxes? Do I have legal action??

    In past I did have to pay for an check the corporate office authorized me to cash for a customer making a payment on their account. It was a tax refund check and the check aparently was stolen from someones mail box and the person who claims it was there check was using a fake ID. I ended up paying $1500 for that, is this legal as well???
  2. #2
    eerelations is offline Senior Member
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    Your employer cannot deduct this type of money from your pay without signed authorization from you.

    However, your employer CAN make it a condition of your continued employment that you pay for merchandise shortages (not by pay deductions, but by you re-paying the employer). If you signed a document agreeing to this, then your employer can let you go for refusing to pay, and can also sue your for the money.
  3. #3
    Wyldrush is offline Member
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    yes I did sign a contract when starting as a mgr. They require all mgrs to sign a contract that states how they are paid since it is all commissions, how bonuses are structured, duties and of course responsible for merchandise. This is a required form to be signed to obtain a store. If you decline to sign, they will not promote you.

    But now since I am a clearance store along with new, I get much more active of merhandise as other stores are sending me discountined, damage and repossessed furniture. Sometimes I do not recieve it and it is noted but still put in the system. That can usually be fixed on audit. But then the VP and Owner all come in and tell me to throw out stuff in clearnace and never delete it from the system and pictures are taken of most merchandise but then they claim it was never authorized and it is just missing when the audit happens.

    Also they send merchandise to just sit in my warehouse becaus they have to much in the main warehouse. I had 2 camcordered stolen by employees, but company never pursued it and I did not know who took them. So now I am buying $800 for that. I never ask for over stock merchandise, they just send it to you.

    Why should I be responsible for that and now they want me to pay money? My company breaks many laws, like I found out you can not bank hrs, they do not pay OT to drivers, I need to give them time off the next week or whenever and they want OT. If someone has an accident with a vechile, they have to pay half the deductible. If 2 people in vehicle they will make each person pay half even thoug passenger not driving. I feel many laws are being broken. But they make you sign a form stating you paying.

    Any thoughts?
  4. #4
    eerelations is offline Senior Member
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    Because you signed a document stating you would pay, you are legally obliged to pay.

    However, if they're trying to make you pay for things that aren't described in the document you signed, don't pay for those items (keeping in mind they might fire you for this). If they take you to court for not paying, let the judge sort it out.

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