UNDER TEXAS LAW:
lets say that at the beginning of a job the employer gives you the employee handbook to sign, meaning that you agree to the terms, and in that handbook it states that if you come out short in the sales that you did, the employer will simply deduct that amount from your paycheck...if you (as the employee) sign it, does it still make it legal for the employer to do that?
i heard that it was illegal for an employer to do that? if it is illegal, by you signing does it make it legal for the employee to do that? but an employee handbook cant overrule a state law...
2007-09-27 00:33:15 · 13 answers · asked by Anonymous in Business & Finance ➔ Careers & Employment ➔ Law & Legal
This is entirely legal. Why should an employer be out money through your incompetence?
2007-09-27 00:36:59 · answer #1 · answered by WC 7 · 0⤊ 2⤋
I have been an HR consultant for 10 years and this is very legal, it is basically stating that they will withhold money in the event of a shortage and you agreed when you signed the handbook. Employers also make similar deductions by requiring employees to wear uniforms and they deduct the cost from their checks.
2007-09-29 19:07:04 · answer #2 · answered by DJA30 3 · 0⤊ 0⤋
I'm not sure about Texas, but in some states it is absolutely illegal to make deductions from paychecks for drawer shortages. Especially if that deduction places the employee at wages below minimum wage.
You need to check the website for the Texas Department of Labor
2007-09-27 07:00:13 · answer #3 · answered by leysarob 5 · 0⤊ 0⤋
Company policies do not overrule law, but if you signed a contract agreeing to this, then it is perfectly legal for them to do so. Their company policy is designed to protect them from shortages and theft. If someone were to come up short a dollar or two, it wouldn't really affect the company, but if someone were taking 23 or 30 dollars at a time, then they would be losing a substantial sum of money. To prevent someone taking money, quitting and them being forced to pay them a last paycheck with no other recourse, they added this policy to protect themselves. Whether it was a simple mistake once or twice is no comfort to the company, so they have to make it standard across the board. They can refuse to hire someone if they refuse to agree to the terms of employment. That is exactly what your employer has done. Their attorney did a great job.
2007-09-27 00:46:46 · answer #4 · answered by Allison P 4 · 0⤊ 1⤋
The problem is, I don't think you understood the terms of your employment.
It sounds like you were getting paid in a structure of what is called a "draw against commission".
What that states is that they agree to pay you a certain amount of money per pay period, but it is NOT a salary, you are expected to do a certain $$ in sales to earn that and they will pay you a certain percentage on top of that for exceeding sales goals.
If your sales goal falls short for a certain number of paychecks, they can LEGALLY start deducting your paycheck or NOT PAY YOU AT ALL.
It is 100% legal.
So, you are not giving the full story.
2007-09-27 06:51:12 · answer #5 · answered by Expert8675309 7 · 0⤊ 0⤋
COnsent by signing may be all they need to fight any litigations- I am not sure of TEXAS law- but many places say if you are short you must take it out of your pocket- (paycheck) this is a common prractice...
Read your employee handbook section about that... and look for previous litigations in this issue for your area online-
I always keep a bunch of change in my pocket and give customers it when needed so I am never short-
2007-09-27 00:38:54 · answer #6 · answered by admiredi 4 · 0⤊ 0⤋
If he is only making minimum wage and doesn't get tips or anything that gets him above minimum wage, the money cannot be deducted. He has to be at least be making minimum wage. If he is making more than minimum wage, whether the deduction is legal or not depends on the laws of his state. There is no federal requirement for people to have breaks. This depends on the laws of the state he lives in.
2016-04-06 03:26:56 · answer #7 · answered by ? 4 · 0⤊ 0⤋
I'm not a lawyer and I'm not from Texas, but I have had clients in Ohio do similar things when delivery drivers were short. There is probably a fine line, but it sounds like your employer has been burned before so chances are he probably checked things out with his attorney.
2007-09-27 00:37:48 · answer #8 · answered by Homeslice 4 · 0⤊ 0⤋
It most certainly is. The company I work for also has employees sign a form saying that they understand the company has the right to do this.
2007-09-27 02:30:52 · answer #9 · answered by thebosslady320 1 · 0⤊ 0⤋
I would think it is illegal do so without your permission or you being told in advance (ie union dues etc) or you requesting it for purposes of insurance, retirement, etc. He has to if your wages are being garnished.
I would check with your accountant to be sure though or the better business bureau first before making a big deal out of it. You want to be sure.
2007-09-27 00:45:24 · answer #10 · answered by Anonymous · 0⤊ 0⤋
Call the Labor Board where you live and ask them. It doesn't sound legal to me. The handbook can say what it wants, if it doesn't comply with the law, the book is worthless.
2007-09-27 00:43:03 · answer #11 · answered by just me 6 · 3⤊ 1⤋