Legal Question in Business Law in Arkansas

employee loan gone wrong

I work for a company who doesn't have many rules and regulations, no employee handbooks or anything. I made an agreement with the person who does payroll and finances and my boss so that we could purchase merchandise through company accounts so that we could get in on volume pricing and buy at wholesale. The way we would pay the company back is out of our paychecks. I agreed to have $30 a week held out of my check to pay off the ''loan'' for the merchandise that I had purchased. Everything was going fine for several months until one of the owners found out and blew a gasket. He apparently does not like the idea of employees purchasing stuff from the company and paying it off out of their paychecks. I was not doing this behind anyones back nor was I trying to rip anyone off. In fact I believe the other owner knew about it he just kept quiet because he knew the the other owner didn't like it.

Now the owner wants the money ($1200) NOW or else he is threatening to terminate my job here and prosecute. Does he have any legal grounds to have me prosecuted? if you have any ideas about this let me know. thanks


Asked on 5/20/03, 11:25 am

1 Answer from Attorneys
Alan Crone Crone & McEvoy, PLC

Re: employee loan gone wrong

Based on the facts as you have described them, I would make a deal now. There are lots of issues related to one owner's ability to make a deal with you without the permission of the other owner. The bottom line is, it will cost you a lot of money to litigate those issues. If you want to keep your job and stay out of court, I would try to cut a deal with the other owner to pay the company back as soon as possible.

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Answered on 5/20/03, 11:49 am


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