Quick Quiz Answer: Recovering Losses From Non-Exempt Employees


The answer to our March 14 Quick Quiz is "$110". The federal Fair Labor Standards Act does not prohibit the employer from recouping some of the loss in that workweek, but it does restrict the amount.

So What Are The Limits?

The employer may not require or allow Alex to restore the loss to the extent that this would (1) cut into the required minimum-wage rate for his first 40 hours worked in the workweek, or (2) cut into any of the time-and-one-half overtime pay due for his hours worked over 40 in the workweek. These limitations apply even though the employer published a policy in advance, and even though Alex signed something saying that he would make the payment. Furthermore, it makes no difference whether he pays in cash, or by check, through payroll deduction, or in some other way.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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