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!
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