Can my employer legally charge me for unpaid invoices and unsold inventory?
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Can my employer legally charge me for unpaid invoices and unsold inventory?
I am a sales rep in Ohio. My employer tells me that any invoice over 120 days
will result in my paycheck being reduced by 1/3 of the value of the invoice.
Additionally, they are threatening to charge us 1/3 of the value of inventory
they stock if we don’t sell it.
I have not agreed to allow them to take deductions from me.
Asked on December 7, 2016 under Employment Labor Law, Ohio
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Do you have an employment contract or union agreement that prohibits this action? If not, then it is legal. The fact is that most employment is "at will", which means that a company can set the conditions of the workplace much as it sees fit, including charging employees for unsold inventory, etc. That is, so long as such charges are made after the time of the policy change. Such a change cannot be made retroactively (i.e. you must be informed of this prior to its taking affect). Further, if you continue in your employment you are implicity giving your consent for this action; such consent need not be in writing.
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
Yes, they can do this, and if you continue to work there after being told of these terms and conditions, you will be considered to have consented or agreed to them; agreement can be by action as well as by words or writing, and continuing to work somewhere when you know the rules or conditions governing your employment shows consent to those rules or conditions. Employers are free to put various costs, chargebacks, etc. on employees, so long as there is consent, including implicit or implied consent. The employees' option is to seek other employment, if they don't want to work under those terms.
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