Can we deduct lost equipment and building damages from an employee’s paycheck?

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Can we deduct lost equipment and building damages from an employee’s paycheck?

The total loss was over $1200 and the employee was terminated. His final paycheck due is $261, leaving us $939 in the red.

Asked on August 25, 2014 under Employment Labor Law, Minnesota

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

No, unless you can sue him and win, you cannot deduct your losses from an employee. You should consult your insurance company for any losses.  In most states, unless you can win a negligence suit, you would not be able to deduct those monies. 


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