What are the laws on wage deduction if an employee causes loss of business to their employer?

UPDATED: Oct 1, 2022

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What are the laws on wage deduction if an employee causes loss of business to their employer?

I’m asking a question on behalf of my sister. She works a regular W2 job at a small game store. Part of her duties is to work at an Escape Room, which is a service where customers enter a room filled with puzzles that they have to solve in order to successfully

Asked on March 30, 2018 under Employment Labor Law, Illinois


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Yes, she is legally required to allow the deductions since the voluntarily agreed to do so--you may feel she was "forced" to sign the agreement, but in the law's eyes, she was not: she could have refused and taken the risk of being fired. When you have the abilty or option to not sign but choose to do so to avoid the consequences, that is still a voluntary signature and you are held to it.
If she fails to repay, she can certainly be sued for it: her actions caused the employer to lose money, and when you are at fault in causing someone else a loss, you are liable for it and could be sued for repayment.

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