Intentional damage does present a different issue. It's still not a payroll/compensation issue, but you have more ability to recover damages caused by intentional actions like these.
Doug From: Af [mailto:[email protected]] On Behalf Of Heith Petersen via Af Sent: Thursday, October 23, 2014 8:29 PM To: [email protected] Subject: Re: [AFMUG] Employee damaging equipment I assume for intentional damage it would be different. My head tower guy got pissed off at his old dell computer 2 weeks ago due to a common Ethernet issue and proceeded to punch the hell out of it due to his frustrations. I told him we had to find better ways to handle the emotions. I did have a new laptop sitting for him down town. I was mostly upset because I was wanting to take it to the rifle range after he picked up the new laptop, he didn't leave me much to shoot From: Af [mailto:[email protected]] On Behalf Of Josh Reynolds via Af Sent: Thursday, October 23, 2014 8:10 PM To: [email protected]<mailto:[email protected]> Subject: Re: [AFMUG] Employee damaging equipment Ah-ha: Found this "Federal law. Under the federal Fair Labor Standards Act (FLSA), a deduction for loss or damage may be made if two conditions are met: The employee signed a written agreement prior to the shortage (at the start of employment or when the policy related to deductions is adopted) by which he or she agrees to such a deduction; and The deduction does not bring the employee's hourly rate below the minimum wage. The second criterion clearly applies to nonexempt employees. Employees who meet the dual duties and salary tests are exempt from minimum wage and overtime laws. For exempt employees, this type of wage deduction is not allowed." Josh Reynolds, Chief Information Officer SPITwSPOTS, www.spitwspots.com<http://www.spitwspots.com> On 10/23/2014 04:52 PM, Travis Johnson via Af wrote: This is the exact reason we implemented "profit sharing". Our employees received bonuses based on how many installs/fixes/pick-ups they did per month... however, the contract stated we could deduct for any missing tools, damage to vehicles, etc. Amazing that all of those type of problems disappeared almost instantly. :) Travis On 10/23/2014 6:47 PM, Josh Reynolds via Af wrote: Federal labor law says you can't hold employees financial responsible for broken/lost tools. (from my understanding) Josh Reynolds, Chief Information Officer SPITwSPOTS, www.spitwspots.com<http://www.spitwspots.com> On 10/23/2014 04:22 PM, Glen Waldrop via Af wrote: How do you guys handle it when an employee damages or loses equipment? This is my baby brother's first job. He tied the ladder and it fell out of the truck, no where to be found. He said he's going to either get me one or pay me back, just curious how everyone else handles this. I've never run into it yet. � Doug Hass Associate 312.786.6502 Franczek Radelet P.C. Celebrating 20 Years | 1994-2014 300 South Wacker Drive Suite 3400 Chicago, IL 60606 312.986.0300 - Main 312.986.9192 - Fax www.franczek.com Circular 230 Disclosure: Under requirements imposed by the Internal Revenue Service, we inform you that, unless specifically stated otherwise, any federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purposes of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or tax-related matter herein. ________________________________________ For more information about Franczek Radelet P.C., please visit franczek.com. The information contained in this e-mail message or any attachment may be confidential and/or privileged, and is intended only for the use of the named recipient. If you are not the named recipient of this message, you are hereby notified that any dissemination, distribution, or copying of this message or any attachment thereto, is strictly prohibited. If you have received this message in error, please contact the sender and delete all copies. ________________________________________ Franczek Radelet is committed to sustainability - please consider the environment before printing this email
