Can the owner of a restaurant take money out of a my daughter’s paycheck because a chair was stolen onher shift?

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Can the owner of a restaurant take money out of a my daughter’s paycheck because a chair was stolen onher shift?

My daughter works at a restaurant. She was working the late night shift and on her shift someone took a chair. So now the owner is telling her he is going to take $25 out of her check and $25 out of the other girls check that was also working that night.

Asked on October 5, 2011 under Employment Labor Law, Michigan

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 13 years ago | Contributor

This deduction is only legal if there is an union/employment contract or stated employment policy indicating that her employer can charge her for an incident of this kind; earned wages must be paid and paid in full.

Additionally, even if your daughter's employer can require repayment for this type of loss (as described above), it cannot simply deduct from her paycheck; payroll deductions are subject to a number of limitations. In such a case, she would need to reimburse her employer by writing a check or at least giving it permission to take the money from her check (as opposed to automatic paycheck withholding).

Note:  As previously stated, without a previous agreement requiring repayment an employer may not force the employee to repay money for a loss.  However, in an "at will" employment situation (and most employment arrangements are), an employer can terminate an employee for not making a repayment. So your daughter just may want to allow the deduction to keep the peace - and her job.


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