Legal Question in Business Law in Michigan

Deductions from pay

I am a manager in a small retail store (about 10 employees). We have 2 non-exempt delivery personnel. The owner wants to implement a 'deduction' schedule if they damage business property (mainly merchandise) or do damage in a customers home. The deductions would amount to docking their pay according to a schedule of severity (1 hour for minor incidents, more hours for major incidents). I questioned the legality of this type of deduction without the employees consent. Is this type of deduction legal or not? The Michigan law that I have been able to read indicates it probably isn't. Thank you.


Asked on 4/06/04, 5:44 pm

1 Answer from Attorneys
Patricia Prince Patricia Gormely Prince, P.C.

Re: Deductions from pay

As a general rule, you are not able to make any deductions from an employee's pay (other than taxes) without his or her consent. I do not see anything in the owner's proposed action that might possibly cause it to be exempt from this rule.

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Answered on 4/12/04, 8:46 am


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