Legal Question in Employment Law in Washington
An employee borrowed some equipment for personal use while off duty. He damaged the equipment. Is it legal to deduct the cost of repairs from his paycheck?
2 Answers from Attorneys
Unfortunately, no you cannot deduct the cost of the repairs from his paycheck. Deductions from paychecks are covered by administrative regulation (WAC 296-126-025 and 296-126-028). During ongoing employment an employer can really only deduct those items required by law or those items authorized in advance by the employee that benefits the employee. The final paycheck has a little more leeway, but there must be a clear policy of the employer provided in advance as to what will be deducted from the final paycheck. You cannot deduct from the last paycheck for damages or theft that occurred before the final pay period. You also must file a police report for any theft.
The answer is maybe, but only under certain conditions.
If he took the equipment with the employer's permission, then the answer is "no", unless he agrees to make payments to cover the damage and he agrees to allow the deductions from his paycheck.
If he took the equipment without the employer's permission, the employer can deduct from his paycheck, only IF the employer also terminates him immediately and makes a police report regarding the theft of the equipment. Then, the employer can only deduct to the point that the employee is making minimum wage for the hours worked. (Of course, if he took the equipment without permission, the option for agreed payments is also there.)