Last paycheck $0!

[CMSC]

What is the name of your state? Kentucky

Some background info:

I was working at a local daycare and taking my son with me in the afternoons for roughly 4 1/2 hrs/day. I had worked at this daycare previously and knew that they gave a 50% discount, the director was upfront about the fulltime vs. parttime rates when I applied the first time. This last time I returned to work, my hours were part time, she never mentioned I'd have to pay fulltime rates again! I went 4 months without the daycare being withheld from my paycheck (I was told by someone else in the office that part time employees got free childcare). In December, I got a note in my mailbox from the owner stating I owerd the 4 months of back FULL TIME care! I argured with her and she said that since my son was there after 1 pm it was considered full time. I agreed to have $50/paycheck taken out until it was paid off, I signed a paper stating this.

Now, I am no longer working there as we had a family emergency and I had to move closer to family. I still had a balance at the daycare but never thought about it as nobody mentioned me paying it off or setting up payments. I gave my 2 weeks notice as required and everything was fine. I received my last paycheck in the mail and it was for $0. They withheld all $324.53 for childcare without my approval.

So after that long-winded explanation, my question is, can they withhold more than the agreed amount without my consent? I would have paid them the $100/month I agreed to but not almost $400 at once!

 

[moburkes]

They were supposed to at least pay you minimum wage for your last check, then bill you for what you owe. You can contact the department of labor for your state at 502-564-3070, and file a complaint.

 

[fairisfair]

what EXACTLY did the paper you signed say?

 

[CraigFL]

Maybe I'm misunderstanding something but as an employer, I can deduct from an employee's check for purchases that employee made. Out of the goodness of my heart, I can split the payments between several checks if I want to. In this case, there was no opportunity like that because there was only ONE check left so I would have to deduct as much as I could up to the amount owed because I certainly wouldn't be extending credit to a non-employee. The check summary I provided would still show the wages earned but also the amount deducted showing a net paid amount of zero...

 

[moburkes]

Maybe I'm misunderstanding something but as an employer, I can deduct from an employee's check for purchases that employee made. Out of the goodness of my heart, I can split the payments between several checks if I want to. In this case, there was no opportunity like that because there was only ONE check left so I would have to deduct as much as I could up to the amount owed because I certainly wouldn't be extending credit to a non-employee. The check summary I provided would still show the wages earned but also the amount deducted showing a net paid amount of zero...

You can't deduct anything from their pay without their written authorization first.

 

[ecmst12]

And you can't reduce the paycheck so that it's less then minimum wage for all hours actually worked.

The thing is, you can file a complaint with the department of labor, but who knows how long it will take before you get your money back. And then when you do, your former employer may sue you in small claims court to get it back. And then you could end up having to pay it all back (with court fees and interest added) at once anyway. So if this settles your debt with them, you *may* be better off just letting things stand the way they are.

 

[moburkes]

Here is something from the Department of Labor's website:

The law sets the maximum amount that may be garnished in any workweek or pay period, regardless of the number of garnishment orders received by the employer. For ordinary garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25 percent of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage (currently $5.15 an hour).

 

[CMSC]

The paper I signed stated that I agree to have $50 per paycheck withheld until the balance owed is paid in full.

I could afford to pay them the $50/check (which would be $100/month) but right now with my move I needed every penny of that check.

This check did not cover the balance of the daycare, I've only paid off $500 and still owe about $500 more! Had I known she was going to charge me fulltime rates for a parttime position I'd have not gone back to work. There was no discussion about rates when I started back nor did I sign any paperwork that had a set amount for childcare on it.

Thanks for all the information. Again like I said I don't mind paying it off but couldn't afford the $300+ they decided to take right now.

 

[moburkes]

And you can't reduce the paycheck so that it's less then minimum wage for all hours actually worked.

The thing is, you can file a complaint with the department of labor, but who knows how long it will take before you get your money back. And then when you do, your former employer may sue you in small claims court to get it back. And then you could end up having to pay it all back (with court fees and interest added) at once anyway. So if this settles your debt with them, you *may* be better off just letting things stand the way they are.

I was going to say all of this in my first post, but didn't, so thanks for adding it.

OP: You must take some of the responsibility yourself. It is your responsibility to clarify how much they will charge for you to bring your son to work. That is common sense. You cannot ASSume that, since someone who doesn't write your paychecks said otherwise, that they were correct. Hard lesson to learn.

 

[CMSC]

They were supposed to at least pay you minimum wage for your last check, then bill you for what you owe. You can contact the department of labor for your state at 502-564-3070, and file a complaint.

When I signed my employee handbook it stated that the only way they would knock you down to minimum wage was if you didn't give them a 2 week notice. I gave them more than that. Thanks for the number I'll be giving them a call!

 

[moburkes]

You're confusing 2 different things. I am saying that you should have at least been paid minimum wage. You cannot receive less than minimum wage, and last I checked, $0 is less than minimum wage. What you are talking about is a reduction in pay if you don't give a notice. 2 different things.

However, I agree with ecmst, that calling will not get your money back any time soon.

 

[CMSC]

OP: You must take some of the responsibility yourself. It is your responsibility to clarify how much they will charge for you to bring your son to work. That is common sense. You cannot ASSume that, since someone who doesn't write your paychecks said otherwise, that they were correct. Hard lesson to learn.

I do take some of the responsibility and like I said, I'm going to pay it, just didn't want to pay that much at once. The only reason I'm upset with them charging is because when I worked there before they had fulltime/parttime rates, I even subbed for them for 2 months and they didn't charge because he was only there parttime.

 

[CMSC]

You're confusing 2 different things. I am saying that you should have at least been paid minimum wage. You cannot receive less than minimum wage, and last I checked, $0 is less than minimum wage. What you are talking about is a reduction in pay if you don't give a notice. 2 different things.

I understand, thanks.

 

[pattytx]

Here is something from the Department of Labor's website:

The law sets the maximum amount that may be garnished in any workweek or pay period, regardless of the number of garnishment orders received by the employer. For ordinary garnishments (i.e., those not for support, bankruptcy, or any state or federal tax), the weekly amount may not exceed the lesser of two figures: 25 percent of the employee's disposable earnings, or the amount by which an employee's disposable earnings are greater than 30 times the federal minimum wage (currently $5.15 an hour).

All of that is true, but this is not a garnishment. This is a debt owed the employer. Wage and hour laws apply to this, not the CCPA.