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My son just started a job with a franchisee of a well-known delivery company. The franchisee is located in Virginia, and some of the items in the employee handbook sound fishy to me. He was given a sheet that listed several offenses along with the associated monetary fine. Three which stood out were:

  • Excessive tardiness and absences - $200
  • Failure to clean the delivery truck - $50
  • Accident - $200 per pay period, "until the company is made whole"

I have no idea how they plan to impose these fines, immediately make him pay or withhold the amount from his paycheck, but I would think that the only recourse an employer has for failing to perform assigned duties is termination, and a civil suit for actions that cause financial harm.

Is this a case where employment terms, no matter how onerous, are allowed, or does this company have no idea what they are allowed to do with their employees?

Peter Mortensen
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Michael J.
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2 Answers2

41

Not by payroll deduction, unless the agreement to do so was not a condition of employment

While it is true (as Just a guy's answer notes) that under § 40.1-29(C) an employee may agree via "written and signed authorization" to an employer withholding money from paychecks, the agreement to do so must be voluntary and not a condition of employment/continued employment.

§ 40.1-29(D) of the Code of Virginia states:

No employer shall require any employee, except executive personnel, to sign any contract or agreement which provides for the forfeiture of the employee's wages for time worked as a condition of employment or the continuance therein, except as otherwise provided by law.

This does not mean that an employee who damages company property or otherwise negligently causes the company financial harm is not liable for such damages, though. Damages to a vehicle or costs incurred for cleaning it might be possible damages. "Excessive tardiness and absences" seems like it'd be difficult, but not impossible, to prove monetary damages for. But to recover these damages against the employee's will, they'd have to file a lawsuit: they cannot simply deduct the damages from wages unless the employee voluntarily agrees to pay them that way (a blanket authorization as a condition of employment does not count).

This article has some more information and a couple relevant examples (including one about vehicle damage).

Ryan M
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35

It depends on what your son signed

§ 40.1-29(C) of the Code of Virginia says employers need written permission to withhold anything besides taxes from paychecks:

No employer shall withhold any part of the wages or salaries of any employee except for payroll, wage or withholding taxes or in accordance with law, without the written and signed authorization of the employee.

As Ryan M points out, there's more!

The very next section, § 40.1-29(D) says employers can't require you give permission as a condition of employment or the continuance therein...

This clause has been interpreted by the Virginia Department of Labor and Industry, to mean:

Blanket authorizations signed by an employee at the commencement of employment which allow such forfeitures will be considered per se a condition of employment, and are not allowed. Only a signed agreement that is truly voluntary, and is not a condition of employment, is allowed by § 40.1-29(D).

Note: Edited in light of correction by Ryan and editorial suggestion by amolloy.

Just a guy
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