Q&A

What to do if an employee steals money from the employer?

What to do if an employee steals money from the employer?

Of course, employers can also try to work out a repayment plan with the employee, if circumstances permit. Depending on the amount of money at issue, this approach may be more feasible for the employee and a way for the employer to avoid more costly steps like litigation. That assumes, of course, that the employee is still employed.

Can a employer deduct theft from your paycheck?

Even where an employer is permitted under applicable laws to deduct the stolen funds directly, if the employee’s paycheck dips below minimum wage on its face, the employee has a colorable claim under the FLSA and litigation may ensue.

When do you terminate an employee for theft?

In virtually every employment lawsuit arising out of termination for wrongdoing, the first step of the termination process, the investigation, becomes the most critical years later in front of a jury. This is even more important when theft is involved. An allegation of theft is a powerful accusation and one that should never be taken lightly.

What should I do if I suspect theft from an employee?

Let employees know that any dishonest acts come with serious consequences. Advise employees that if they know of another employee’s dishonesty and fail to report it, they can be subject to discipline as well. Remember, the word “theft” is a minefield all by itself.

How are employers stealing money from their employees?

Employers steal wages from their employees in many creative ways. Since every state differs in how employers should report pay to their employees, sometimes employees might not even recognize the problem of wage theft. Recognizing wage theft begins with understanding your employee rights and the corresponding remedies.

In virtually every employment lawsuit arising out of termination for wrongdoing, the first step of the termination process, the investigation, becomes the most critical years later in front of a jury. This is even more important when theft is involved. An allegation of theft is a powerful accusation and one that should never be taken lightly.

Even where an employer is permitted under applicable laws to deduct the stolen funds directly, if the employee’s paycheck dips below minimum wage on its face, the employee has a colorable claim under the FLSA and litigation may ensue.

Let employees know that any dishonest acts come with serious consequences. Advise employees that if they know of another employee’s dishonesty and fail to report it, they can be subject to discipline as well. Remember, the word “theft” is a minefield all by itself.

Can a company fire an employee who stole from them?

It’s natural to want to let go of an employee who you suspect stole from you. Because of laws established by Employment at Will , you have a legal right to fire any employee for cause, or for no cause. In this instance it would be considered a for cause scenario.

Can a employer charge you for a lost item?

Therefore, if you only earn minimum wage, your employer cannot charge you for any losses. It is also a good idea to check your state’s employment law. Many states offer greater protections for employees than the federal law.

Of course, employers can also try to work out a repayment plan with the employee, if circumstances permit. Depending on the amount of money at issue, this approach may be more feasible for the employee and a way for the employer to avoid more costly steps like litigation. That assumes, of course, that the employee is still employed.

What happens if an employer refuses to pay back pay?

Back pay is the difference between what an employee is entitled to and what he was actually paid. If an employer is ordered to pay an employee back pay to settle a wage dispute, then the employee has the right to file a private suit for back wages, liquidated damages, court costs and legal fees.

Therefore, if you only earn minimum wage, your employer cannot charge you for any losses. It is also a good idea to check your state’s employment law. Many states offer greater protections for employees than the federal law.