Is it illegal for a company to make you pay an insurance deductible after accidentally wrecking a company vehicle due

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Is it illegal for a company to make you pay an insurance deductible after accidentally wrecking a company vehicle due

It was bad weather. Are they allowed to insist a payment plan on paychecks to pay this back? Finally is it legal to document this on a paycheck as an advance repayment?

Asked on February 1, 2012 under Employment Labor Law, Michigan

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

1) Can your company ask you to repay any costs--including an insurance deductible--they incurred due to you damaging a company vehicle? Yes.

2) Can they simply take the money from your paycheck? No, not unless you agree to let them do this.

3) If you don't agree to repay the company voluntarily, but they feel you owe the money, they could sue you and try to prove that you were at fault; if they can prove that, they will get a judgment in their favor and can take collections action against you.

Legally, you would be at fault if you were negligent, or unreasonably careless--for example, if you were driving too fast for conditions.

4) Bear in mind, that if you don't have an employment contract protecting your job, you are an employee at will. Your employer may terminate you if they choose.


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