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Tina
Tina, Lawyer
Category: Legal
Satisfied Customers: 33166
Experience:  JD, BBA Over 25 years legal and business experience.
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A salaried, non-supervisory employee is disciplined for a theft

Resolved Question:

A salaried, non-supervisory employee is disciplined for a theft or money shortage. Company policy provides that that the missing money may be made the personal liability of the employee. The employer has directed the employee to sign an agreement to repay the money or be subject to termination. Would terminatio of the employee under these circumstances constitute a violation of the Fair Labor Standards Act, wage rate laws, or any other violation of federal law?
Submitted: 7 years ago.
Category: Legal
Expert:  Tina replied 7 years ago.
Thank you for contacting our JA team for guidance.

No. The employer can either demand repayment from the employee in this way, or file a complaint with the police or terminate the employee and file suit for damages against the employee.

It does not violate federal law. However, some states do not allow employers to take any deductions from your wages unless there is an agreement signed by the employee. Depending on the circumstances, their coersive tactics to get the employee to sign the agreement may be considered illegal under state law as this is not really a voluntary agreement when the employee is being faced with termination of their employment.

Please let me know if you need additional information.


Best regards XXXXX XXXXX

TG

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