The pitfalls of deducting expenses caused by lost or broken equipment from employee pay
We regularly receive inquiries from dealership clients as to whether they can deduct from an employee’s pay the expense caused by the employee’s loss or damage to Company equipment. This question often comes up in relation to electronic devices issued to employees by the dealership, (such as phones and other mobile devices), as well as vehicles and other equipment that employees use to perform their jobs. If the employer believes that the employee was careless or negligent in causing the damage or loss of the equipment, it may be tempting for the employer to simply deduct the expense or loss from the employee’s paycheck. But doing so is risky!!