Can an employer ask an employee to back cash shortages?
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Can an employer ask an employee to back cash shortages?
I have. And a few cash shortages.
Asked on April 6, 2016 under Employment Labor Law, Alabama
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
So long as the employee still earns at least the minimum wage after paying for a cash shortage, there's no rule against charging an employee for it. This is true as long as this is, and has been, company policy. If it is a new policy, an employee can be charged for such shortages only after the policy went into effect. In other words, they cannot be charged retroactively. Additionally, some states require employers to get their employee's written consent if they want to make a deduction from the employee's paycheck. And a minority of states only allow such deductions from an employee who takes responsibility for the loss, or if the employer can show that the employee acted negligently or dishonestly.
Also, if you have an employment contract or union agreement that prohibits this action or your treatment constitutes some form of actionable discrimination, then you may have a claim. To be sure, consult directly with an employment law attorney in your area.
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