Paycheck chargebacks

[CELL7627]

I am in the state of Pennsylvania.
What is the exact law that defines when and how an employer can "chargeback" an employeers paycheck?
I am in the process of filing a claim against a former employer and need to have my ducks in a row.
My job was a commission based job. Whenever a salesperson made a sale, they were paid the following payday for it. If the customer returned the product for whatever reason, or a check bounced. The employer would then "chargeback" the employees paycheck the amount of commission paid as well as shipping costs and in some cases...cost of the product.
The employer made all employees sign a "blanket agreement" allowing him to do this.
As far as I know, a seperate agreement has to be signed EVERYtime the employer is going to deduct pay from an employee. He didnt.
It also needs to be noted that in the occasional event of the employee having to be charged back for the cost of the product...he never revealed the actual cost. He just charged back whatever he SAYS was his cost..

 

[JETX]

As far as I know, a seperate agreement has to be signed EVERYtime the employer is going to deduct pay from an employee.

Your 'knowledge' is not correct. As long as you sign a document authorizing the employer to deduct.... and as long as the deductions comply with the agreement you signed.... they are allowed. Also as long as your take-home still meets or exceeds the minimum wage.

It also needs to be noted that in the occasional event of the employee having to be charged back for the cost of the product...he never revealed the actual cost. He just charged back whatever he SAYS was his cost..

Then ask for his cost.

 

[CELL7627]

Your 'knowledge' is not correct. As long as you sign a document authorizing the employer to deduct.... and as long as the deductions comply with the agreement you signed.... they are allowed. Also as long as your take-home still meets or exceeds the minimum wage.


Then ask for his cost.

And i'm sure you can provide me with the specific PA statute outlining this, correct?

 

[mlane58]

And i'm sure you can provide me with the specific PA statute outlining this, correct?

http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=61106&landiPNavCtr=| Number 12 on the list

 

[CELL7627]

http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=61106&landiPNavCtr=| Number 12 on the list

Thank you....from that statement...

What Can Be Deducted From My Paycheck?

If you have borrowed money from a third party, you can give the employer written permission to deduct payments from your earnings. If your employer has loaned you funds, s/he can deduct the amount from your earnings as long as you have given written authorization. Of course, normal tax deductions must be made. The thing to remember regarding deductions from your paycheck is that you must give written authorization to your employer to make such non-tax related deductions. It is not valid to sign a "blanket" authorization at the time of hire to cover any future deductions. Further, as a rule, deductions cannot reduce your gross pay below minimum wage, and the deductions must be to the benefit of the employee.

The bold underlined part is what I was referring to. Thanks alot

 

[Gadfly]

Read the document you signed before you go nuts. It may not be as big a blanket as you think.

 

[CELL7627]

Read the document you signed before you go nuts. It may not be as big a blanket as you think.

Their was no specific agreement for this. The practice was outlined in the employees manual and then after reading the whole manual, we were given a "do you agree" contract to sign.
What we signed constitutes a "blanket" agreement as stated in the statute. It also needs to be noted that the employer never paid taxes on these deductions. We were payed, we paid the taxes and then later the money was chargebacked before taxes were figured in.
So, in other words, we were chargedback money we paid taxes on already, and then he never reclaimed them in the proceeding paycheck.
The breakdown went something like this...
employer made a weekly figure of commissions before taxes--->check was sent to 3rd party payment processor--->taxes deducted--->paycheck to employee.
Then, in the event of a chargeback...
employer made a weekly figure of commissions before taxes with the chargebaks figured in---->then the end result sent to 3rd party payment processor----then employee recived paycheck.
So...as I said, we were unlawfully chargedback on moneies we paid taxes on, but then he turned around and never paid the taxes himself

 

[pattytx]

So, file a complaint with your state Dept. of Labor.

 

[CELL7627]

So, file a complaint with your state Dept. of Labor.

I already did. I just wanted to be more equipted and have the specific statute ready to present in case of a refussal on his part.
Still wondering what the specific statute is...

 

[pattytx]

Don't worry about it. It is the state DOL's responsibility to provide the law to the employer, not you. That's their job.

 

[JETX]

I already did. I just wanted to be more equipted and have the specific statute ready to present in case of a refussal on his part.
Still wondering what the specific statute is...

From the PA L&I Wage & Hour Division:
What Can Be Deducted From My Paycheck?
If you have borrowed money from a third party, you can give the employer written permission to deduct payments from your earnings. If your employer has loaned you funds, s/he can deduct the amount from your earnings as long as you have given written authorization. Of course, normal tax deductions must be made. The thing to remember regarding deductions from your paycheck is that you must give written authorization to your employer to make such non-tax related deductions. It is not valid to sign a "blanket" authorization at the time of hire to cover any future deductions. Further, as a rule, deductions cannot reduce your gross pay below minimum wage, and the deductions must be to the benefit of the employee.
http://www.dli.state.pa.us/landi/cwp/view.asp?a=142&Q=61106&landiPNavCtr=|#12