On October 16, 2020, employment law partner Andy Sherrod was quoted in an article published by the Society for Human Resources (SHRM) addressing employment policies related to property damage caused by employees.
One question when considering whether an employer may charge an employee for damage to company property is the exemption status of the employee, ad deductions from an exempt employee’s salary for damage would violate the Fair Labor Standards Act’s salary-basis requirement. “Care is essential because an employer that deducts from an employee’s salary improperly risks nullifying the exemption and creating exposure to overtime claims,” Sherrod said.
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Myrna H. Rooks