Can an employer make employees pay for cash register shortages?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can an employer make employees pay for cash register shortages?
My ex-employer made waitstaff pay for cash register shortages and ticket errors out of their own pocket without written consent.
Asked on October 28, 2011 under Employment Labor Law, Michigan
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
The general rule is that as long as the employee still earns at least the minimum wage after such a deduction, there's no rule against charging an employee for a shortage. This is true so long as this has been existing company policy. If it is a new policy, the employee can only be charged for shortages after the new policy went into effect (i.e. not retroactively). However, some states require employers to get the employee's written consent before they can make this type of deduction from the employee's paycheck. And a few states only allow such deductions from an employee who assumes responsibility for the loss or unless the employer can show that the employee acted dishonestly or negligently.
So unless you have an employment contract or union agreement that prohibits an employee from being held liable for a cash draw shortage or this deduction constituted someform of actionable discrimination (i.e. one based on gender, religion, race, etc). You employers action was most probably legal. To be sure, consult directly with an employment law attorney in your area.
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.