Can an employer deduct wages or pay from a paycheck to compensate for a mistake made or money lost?

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Can an employer deduct wages or pay from a paycheck to compensate for a mistake made or money lost?

My boyfriend works for a sandwich company and he forgot to put in an order worth $130. He refunded the customer $50 for their order but his boss ended up taking out the full $130 from his paycheck. His boss has done this before with other mistakes and other employees. Is this legal?

Asked on March 4, 2012 under Employment Labor Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

An employer may not deduct money from an employee's paycheck without the employee's consent or agreement. (Apart, that is, from deductions required by law--FICA, certain wage garnishments, such as for child support or back taxes, etc.) So the employer cannot simply take the money from your boyfriend. However, an employer may terminate or fire an employee whom it believes has cost the employer money, such as by forgetting an order. The employer could also theoretically sue an employee whom it believes cost it money either deliberately or through negligence (unreasonable carelessness), though as practical matter, it is unlikely to do so for amounts this size.


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