Expert: Shirley McAllister, CPP, PHR - 3/18/2009

Question
If an employer buys out an employee from an agency and this employee signed an acknowledgement that she would remain employed at least one year and now is quitting and says she cannot afford to pay the $1000 paid on her behalf for the buyout. Are we legally able to take payroll deductions from her last 2 paychecks and if so are we limited as to how much we can deduct. Is she entitled to a certain gross percentage in the state of WI?

Answer
Does the signed agreement have a clause that says she agrees to pay back the money if she quits? If it does not than you cannot deduct the money from her check.

If it specifically say she will pay the money back if she quits than you can deduct but you cannot take her wages below minimum wage.

I would be very sure on this maybe even have your attorney take a look at it because if she is owed the wages and you do not have a clear written authorization saying she will pay it back you could end up paying a lot more.

This is not a retention bonus or an education amount. Usually paying an agency to hire someone is a company expense of recruiting and is not charged to the employee, I have never seen this done before.



Shirley