How does an employer recover costs from an employee?
To the extent recovery is allowed, the employer may recover the costs through deduction from any sums due to the employee (e.g., unpaid wages, vacation pay, profit sharing, etc.), provided such deductions do not otherwise violate applicable Federal or State wage payment or other laws.
Can You recover training costs when an employee leaves?
It is tempting for employers to demand repayment of training fees where an employee leaves the organisation. However, whether such threats hold water depends on the contractual position. If there is not a contractual right that allows for the employer to require repayment, the money cannot be recovered.
Can a employer claw back training costs from wages?
From time to time the government publishes lists of offending employees. So, even with what appears to be a well drafted and watertight clause permitting the employer to claw back training costs from wages, there is a risk that, should a deduction, the employee will have been paid below the NMW. What should employers do?
Do you have to pay for employee certification?
Such certification is not required unless requested by the employer. The cost of the certification shall be borne by the employee, and the employee is not entitled to be paid for the time or travel costs spent in acquiring the certification.
To the extent recovery is allowed, the employer may recover the costs through deduction from any sums due to the employee (e.g., unpaid wages, vacation pay, profit sharing, etc.), provided such deductions do not otherwise violate applicable Federal or State wage payment or other laws.
It is tempting for employers to demand repayment of training fees where an employee leaves the organisation. However, whether such threats hold water depends on the contractual position. If there is not a contractual right that allows for the employer to require repayment, the money cannot be recovered.
Can a company recover back wages from an exempt employee?
Even for exempt employees, “improper deductions” can undo their exemption, putting the employer on the hook for back wages. Employers also must consider any applicable collective bargaining agreements. In reality, many employers won’t actually attempt to recover training costs from an employee.
What happens when an employer reimburses an employee?
Employers must ensure that reimbursements don’t cause minimum wage or overtime violations. Even for exempt employees, “improper deductions” can undo their exemption, putting the employer on the hook for back wages. Employers also must consider any applicable collective bargaining agreements.