FAQ

Can an employee be charged for damage?

Can an employee be charged for damage?

Charging employees for damaged property without explicit proof that the employee damaged the property on purpose is generally considered to be a business expense. To put it simply, you cannot force an employee to pay for damages or lost property; however, you may “respectfully request” that they do.

What happens if we break company laptop?

If it is an accident, most likely it could be replaced at the expense of the company. If it is stupidity in place, e.g. you drop into a bath tub full of water or something, be prepared to pay for full or partial of the replacement cost. Bring to your supervisor and seek his advise on replacement cost.

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Should employee pay for damages?

The damage must be treated as a business expense. You can only require an employee to pay for damaged equipment, if the damage is done on purpose or because of gross negligence. Unless you have video footage of the incident, there is no way to prove why the equipment is damaged unless the employee confesses.

Should an employee pay for damage to company property?

If I break or damage company property or lose company money while performing my job, can my employer deduct the cost/loss from my wages? A. No, your employer cannot legally make such a deduction from your wages if, by reason of mistake or accident a cash shortage, breakage, or loss of company property/equipment occurs.

Can an employer be held liable for damages?

In other words, the employer may be held liable for any damages or injuries that result from an employee’s negligent actions. Despite the fact that the employee was the one who caused the harm, the injured party may be able to collect a larger damages award at the expense of the employer.

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Can an employer withhold pay for damages?

The only deductions your employer can take from your pay are deductions he or she must take and deductions you have agreed to. Your employer must have your agreement in writing. Sometimes employers take money out of your pay to pay themselves back for cash shortages, or property damage. But this is not legal.

Why do companies have reimbursement policies for damaged property?

From an employer’s viewpoint, such policies are a matter of security and fairness, particularly when reimbursement is required only for intentional misconduct or damage resulting from unauthorized use of company property.

Can I deduct lost and damaged equipment from my paycheck?

For example, many states require employers to get the employees’ written consent before they can make a paycheck deduction, while other states do not allow a deduction at all. California considers lost and damaged equipment to be an ordinary cost of doing business,…

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Can I authorize payroll deductions for damage or loss to company property?

Before implementing such a policy or executing an agreement with an employee to authorize payroll deductions for damage or loss to company property, employers should be aware that many states and the federal government have laws restricting or even prohibiting an employer’s ability to make such payroll deductions.

Can you sue an employee for damaging your equipment?

However, Kynaston says the situation is slightly different if the employee has deliberately or negligently damaged equipment. “If the employee has been negligent and has cost the employer a whole lot of money, it is arguable, you might be able to bring a claim against your employee in those circumstances,” says Kynaston.