Is it legal to subtract an unauthorized charge on a company credit cardfrom an employee’s paycheck?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Is it legal to subtract an unauthorized charge on a company credit cardfrom an employee’s paycheck?
We have employees that have company credit cards.
Asked on December 15, 2010 under Employment Labor Law, Michigan
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
No. Generally speaking it is not a legal deduction that an employer can make. The law may vary in your state and you may want to consult with an accountant to be sure but I would bet that it is the rule there as well. Instead it may be necessary for you to "bill" the employee for the charges that they have incurred that were not related to doing their job. Then you may have to re-think your policy on employee credit card use. Depending on what kind of business that you are there may be different alternatives for you, like opening up accounts at specific businesses, etc. Good luck
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.