Quick Quiz: Recovering Losses From Non-Exempt Employees


Store Associate Alex is paid on an hourly basis at the rate of $10 per hour. On Monday, he accepts a $150 check in payment for merchandise. He was so busy that he forgot to get the necessary customer information, and now the check has been returned because the account is closed. Alex's employer is unable to contact the customer.

A written company policy that is given to all employees when they are hired requires Alex to pay for the loss that workweek through payroll deduction, in cash, or by personal check. As the policy requires, the Store Manager has Alex sign a memo saying that he agrees to make the payment. Alex adds a notation that he prefers to pay in cash. He works exactly 45 hours that workweek.

Under the federal Fair Labor Standards Act, how much can the employer recover from Alex?

Please see full quiz below for more information.

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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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