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Payroll question???

holy hammer | Posted in Business on October 4, 2007 01:38am

I have a production manager that is a salaried employee. I am switching him to hourly pay on Monday. I am doing this because he is taking too much time off and not making up for it, along with developing a severe entitlement attitude, and his work is not as good as it should be. I am constantly having to correct his mistakes.

I am assuming he will quit when this happens which is fine by me. I loaned him about $2,600.00. That is about two weeks pay. Can I withhold his final two weeks salaried pay to pay myself back?

Constructing in metric…

every inch of the way.

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  1. Piffin | Oct 04, 2007 01:45am | #1

    There will be labor laws for your state that may dictate this.

    Also, you say this is a loan.
    That implies that you have a written agreement for how it is to be paid back. This agreement will dictate how you must behave.

    But if this is not a loan, but a salary advance payment, you may be free to withold all you want.

     

     

    Welcome to the
    Taunton University of
    Knowledge FHB Campus at Breaktime.
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    1. holy hammer | Oct 04, 2007 02:44am | #2

      It was an advance that was to be paid back monthly. A few payments have been made in the last year, but financial problems prevented him from doing so.Constructing in metric...

      every inch of the way.

  2. User avater
    JeffBuck | Oct 04, 2007 02:53am | #3

    uh ... why not fire him?

     

    U think it's gonna be good for the company having an obviously pissed off employee walking around trying to figure out better ways to steal from U before he quits or gets fired?

    something tells me unless there was a signed contract to kiss that "loan" goodbye.

     

    Jeff

        Buck Construction

     Artistry In Carpentry

         Pittsburgh Pa

    1. holy hammer | Oct 04, 2007 03:21am | #4

      I dont want to fire him. I am holding out hope that he will come around and see the light. He actually can make more money getting paid overtime by going hourly, but he will have to earn it. Salary to him has become a gravy train. I'm not worried about him stealing, he's not the type.Even if I don't pay myself first with his last check, I will be paid back. He's not a thief, I just want to be paid back asap.Constructing in metric...

      every inch of the way.

      1. DonK | Oct 04, 2007 03:47am | #5

        Check the local labor laws on the payback issue, but I would bet a box of doughnuts that you can't withhold anything from him without his agreement of a court order.

        Don K.

        EJG Homes     Renovations - New Construction - Rentals

        1. holy hammer | Oct 04, 2007 04:02am | #6

          I have a letter from his wife thanking me for the advance and promising to make monthly payments. When can an employer call in an advance?Constructing in metric...

          every inch of the way.

          1. DonK | Oct 04, 2007 04:30am | #8

            I don't know the answer, especially in your jurisdiction.

            Years ago, I worked for a large Insurance co in their legal dept. in NYC and we had a situation where an employee was overpaid. There was no dispute over the overpayment. Question presented was whether the company could take the money back and the answer was clearly NO!

            Your situation is slightly different because it was an advance, but your agreement didn't say you could take it back. It said he would make payments. Since the choice was still his, I'll stand by my guess. Insofar as you are in a major metroploitan area, I would suspect that the employees are well protected.

            You know in the time that you spent posting and going back and forth, you could have called the labor board  for a definitive answer, right?

            Don K.

            EJG Homes     Renovations - New construction - Rentals

      2. Piffin | Oct 04, 2007 04:06am | #7

        not the type?Well, you might have a diffeent take on him.You have certainly spent more time with him than I have...But if he has consistantly been taking a salary that he is not earning, that right there is stealing and is the same sort of character . the criminal mind looks to get something for nothing. 

         

        Welcome to the Taunton University of Knowledge FHB Campus at Breaktime. where ... Excellence is its own reward!

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