Submitted by Anonymous on Mon, 10/12/2009 - 16:28
Is it legal for an employer to take an unauthorized deduction from an employee's paycheck for damage done to company property?
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Editor's Response re withholding paycheck
With some exceptions (such as when an employee quits after getting a pay advance), the general rule in Massachusetts is that employers should not make any deductions from paychecks unless it has the written permission of the employee. Rather, the law requires the employer to file a separate claim against the employee. For more information, try the Attorney General's Fair Labor Hotline at 617-727-3465
Update re deductions from pay checks
See also, Camara v. Attorney General, SJC 10693 (2011), in which the Court affirmed a citation from the Attorney General and held that employers may not make deductions from an employee's check to cover damage caused by the employee to the employer's property. The Court held that the employer may "set-off" only when it can show a "clear and established debt owed to the employer by the employee." The Court sited several examples of permissible set-offs, including: (1) an undisputed loan or wage advance from the employer; (2) a theft of the employer’s property by the employee; and(3) the value of the employer’s property, when the employer has obtained a judgment against the employee for the same. (In the Camara case, no such judgement had been obtained.)