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VA: Employer charging employee for damaged/unsellable products

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employee#1

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

This question also includes elements of termination/wrongful termination.

I work for an electronics retailer in Virginia. I have a question about my employers attempts to charge me for any lost, missing, damaged, or unsellable merchandise.

In particular, I took phone return recently that had activation lock software enabled (via iCloud). This is my first time in a few years there that I have made a mistake like this. My employer is now attempting to charge me $700 to pay for the phone because the activation lock means they cannot resell it. It is my understanding that charging employees for such losses is illegal in Virginia, and they cannot take it out of my paycheck without a written authorization that I sign without the authorization being a condition of continued employment. I am worried that we're about to have a standoff over this.

They charge employees for a lot of losses already, so they'd be in a precarious spot if it's as illegal as it seems and all those charges come home to roost.

My questions are as follows:
1) Am I correct in my belief that this is illegal per 40.1-29 (I think) in the VA Code?
2) Can I be fired for refusing to pay?
3) Would such a refusal mean my firing was for cause and thus prevent me from receiving unemployment benefits?
4) Would I have grounds for wrongful termination in that case?
 
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cbg

I'm a Northern Girl
1.) Yes
2.) See #4
3.) No
4.) The law does not expressly prohibit termination for this reason; however, Virginia recognizes the "public policy" exception to at-will employment. So if you were to file a complaint of unpaid wages with the VA state DOL, that would go a long way to providing you with protection.

Consult local counsel.
 

employee#1

Junior Member
No, we are well above minimum wage.

I do have a follow up question, though.

In this particular role, they will deduct from our paychecks what are called "deacts" or "chargebacks". In other words, if I sell an iPhone that they say costs $700, my commission is typically about $50. If the customer's service is cancelled (for nonpayment, simply disconnecting the line, anything) in the first 6 months, they deduct from my paycheck about half of the value of the phone ($300ish in the case of an iphone). Is that typically allowed given the circumstances of commission or would that fall under deductions from pay for losses/damage? It could be seen as a grey area issue, but I've always thought it was closer to violating the law than not.

I'm assessing all of the things they've done given the circumstances and possible necessity of legal action.

Thanks for the answers so far.
 

cbg

I'm a Northern Girl
My commission experience is well out of date and I never had any in your state. I'd discuss that one with the attorney you talk to about the other issue, or at least the VA DOL. Sorry.
 

OHRoadwarrior

Senior Member
They cannot legally deduct the money from your wages. They can lower your wages going forward with notice as long as you earn minimum wage. In other words, you can win the battle buy you will lose the war no matter what.
 

LdiJ

Senior Member
No, we are well above minimum wage.

I do have a follow up question, though.

In this particular role, they will deduct from our paychecks what are called "deacts" or "chargebacks". In other words, if I sell an iPhone that they say costs $700, my commission is typically about $50. If the customer's service is cancelled (for nonpayment, simply disconnecting the line, anything) in the first 6 months, they deduct from my paycheck about half of the value of the phone ($300ish in the case of an iphone). Is that typically allowed given the circumstances of commission or would that fall under deductions from pay for losses/damage? It could be seen as a grey area issue, but I've always thought it was closer to violating the law than not.

I'm assessing all of the things they've done given the circumstances and possible necessity of legal action.

Thanks for the answers so far.
That scenario seems highly irregular...and potentially illegal. They are deducting more from you than you ever received in the first place.
 

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