It’s Easy to Become a Wage-and-Hour Criminal. Here’s How Not To.

April 25, 2011
Managing Your HR

Docking an employee’s pay for loss or destruction of company property is a fairly common practice among small businesses. However, these practices violate wage-and-hour laws of several states, including, but not necessarily limited to, California, Connecticut, Iowa, Massachusetts, Minnesota, New Jersey and New York. Violation of these laws can result in monetary and criminal penalties.

“These states have laws specifically prohibiting deductions from employees’ wages in the event of cash shortages, loss of equipment, misconduct, the destruction of company property and various other occurrences,” keith Reinfeld says. “For instance, a grocery store cannot deduct $10 from the paycheck of a cashier who could not account for a $10 cash shortage at the end of his or her shift.”

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