An eye for an eye: Docking employee pay…

Business Owner: My employee backed our company car into a pole. There is roughly $750 in damage. I am very upset about this- I want to dock his pay for each pay period by $50 until the balance is paid. Is this okay?

In Michigan? Generally, the answer is NO! And there is a VERY limited exception. Here, the docking of time worked cannot be used as a disciplinary measure! You are REQUIRED to pay your employees for all wages earned.

Michigan law states: “Except for those deductions required or expressly permitted by law or by a collective bargaining agreement, an employer shall not deduct from the wages of an employee, directly or indirectly, any amount . . . without the full, free, and written consent of the employee, obtained without intimidation or fear of discharge for refusal to permit the deduction.”

So, unless your employee agrees in writing without coercion or fear of retaliation, you cannot deduct these damages from his pay. This issue comes up daily in several different scenarios. Be very careful not to violate this law- an employee has up to 12 months after a violation to make a complaint with the State! Questions? Concerns? Contact us today!

‪P: 248-395-3699 E:

*Please be sure to read the disclaimer section on our site!!!


Recent Posts

See All

Are you part of the 44%?

According to a 2016 Gallup Poll taken after superstar Prince died, only 44% of Americans reported having a will. News outlets widely reported on the probate proceedings for his estate. One of the most

Weed Woes…?

Last week, Detroiters voted to pass two ordinances that lessen the restrictions on medical marijuana dispensaries in the City. The vote comes well over a year after City Council passed a largely restr


Choosing the right business structure is critical. It is also very PERSONAL. There are liability, compliance and tax considerations that must be contemplated when making this choice. This is why you s