b' Theft: Employers may deduct losses from employee theftPaydayloandeduction:Tomsimplycannotlivewithinhis or misappropriation of company resources and take themeans. This month he takes out a payday loan and makes a employees pay below minimum wage in doing so.voluntary wage deduction agreement with a local payday loan What about tips: Most employers dont think of the differencecompany. Tom provides the form to his employer and requests betweenpayingminimumwageandtheallowed$2.13forthat a portion of his pay be diverted to the payday loan company.tipped employees as a deduction from pay, but the federalIs the employer obligated to fulfill this request? No. Employers government sees it as a deduction from minimum or overtimemaychoosewhethertoacceptavoluntarywagededuction wages, even though it is referred to as a tip credit. (Seetheagreement from an employee. The payday company will just Tips section for more information.) have to sue Tom to get their money. That said, employers are prohibited under other laws from using this as an excuse to Common Situations: prevent an employee from participating in a benefits program, My register came up short:Bobs Bowling Balls has a policy thatsuch as health insurance, offered to employees of the business. all employees are responsible for shortages on their register atWhat Should I Do:the end of each shift. Bob believes that employees who come up short must have stolen the money and this is the best wayGood: Always get consent, be careful deducting below minimum to keep them honest. Bobs view may be logical, but it isntwage as noted above, and check that the deductions made for totally legal. If Bob has solid evidence that an employee stolemultiple garnishments do not exceed the legal limit.money, he can take those losses from the employee in the form of wage deductions, even reducing the employees pay belowBetter:Inadditiontotheabove,documentanyloantoan minimum wage, but the deduction must still be authorized byemployee as a separate document to protect your ability to sue the employee to be valid under the Texas Payday Act. Bob mayif the employee leaves. Consider creating a single consent form follow his policy for register shortages without evidence so longsigned at the time of hiring (or as soon as you read this) with all as it is authorized in advance by the employee and does notthe different types of deductions in it. take them below minimum wage.Best: Alloftheabove,pluscreatespecialpoliciesinyour Guilt by garnishment: Suzy Straightlaces employee Tim hasemployee handbook regarding deductions, and utilize a specific had a run of bad luck. Despite working two jobs he still cannotpolicyforanyadvancesforpremiumsonhealthpoliciesto cover all the costs of his financial obligations and the medicalensure no discriminatory practices. treatment for his special needs child. Tim has defaulted on his student loans and is behind on his taxes so he recently suffered an IRS levy. Suzy decides that Tim must be let go because her customers would freak out if they realized Tim, an accountant, was handling their money but could not handle his own. Has Suzy strayed off the straight and narrow? Yes. Employers are not permitted to consider the fact that an employees wages are being garnished in termination or disciplinary decisions.36'