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  1. #1

    Default Can Your Employer Make a Wage Deduction if You're Late for Work

    My question involves business law in the state of: Arizona

    My daughter has been working 6 years as commissioned sales employee of a Kiosk at a local mall. As part of the kiosk owner's lease agreement the kiosk must be open and ready to conduct business at mall opening. If the kiosk is not open and ready to conduct business the lease management imposes a fine.

    So, as a deterrent the employee's are told verbally if they show up to work late for their shift they will receive a (ticket) be fined a $100.00
    and it will be deducted from their earned commission as punishment for showing up late or being late and unable open the kiosk on time.

    The employees are also fined $25.00 if they are caught using their cell phone during working hours. The policy has been accepted by the employees and they don’t argue about it. If there are any objection's the employer simply tells the employees if you don't like this late fine punishment policy then don't show up to work late or in the alternative you don't have to work for the company any longer.

    Unfortunately, over the years my daughter has lost a lot of money due to showing up late but she also earned a lot of money.

    Now, having worked for the owner's for the past 6 years and made the owner a lot of money the two owners have recently moved to another state and has opened up another kiosk's. Since my daughter has been the longest employee and has been the most productive employee and has also managed the daily operations of the business as a manager for the owner she has been given a golden opportunity since the owners are now absent from the business locally. She has become a business partner of ownera without any financial investment on her part and she will receive 50% of the profits at the end of the year after expenses.

    So, now being a part owner of the business she wants to put this show up to work late fine and cell phone punishment into a written policy rather than being verbal and having her employee's sign they understand and accept this policy. If they don't want to sign and accept the policy they are free to no longer work for the company.

    Is this type of business practice legal? I'm not wanting personal opinions I'd rather have legal opinions if possible.

    Thank you for reading and responding

    DDSA

  2. #2
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    Default Re: Employee Fine As a Punishment for Showing Up Late to Work

    As long as the employees (if non-exempt) are net paid at least minimum wage for the hours they do work, then it's usually not illegal.
    While putting it in writing would help, it's not required, and it's certainly not required that any employee signs it (though it can be used to counter "you never told me" arguments).

  3. #3
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    Default Re: Employee Fine As a Punishment for Showing Up Late to Work

    It should be clearly spelled out this is part of the commission agreement.

  4. #4
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    Default Re: Can Your Employer Make a Wage Deduction if You're Late for Work

    Refer your daughter to her company's law firm, as drafting employment contracts is "above her pay grade, and also to A.R.S. 23-352.

  5. #5
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    Default Re: Can Your Employer Make a Wage Deduction if You're Late for Work

    You might also point out to your daughter that even if fining the employee for tardiness is not legal, firing the employee for tardiness is.

  6. #6

    Default Re: Can Your Employer Make a Wage Deduction if You're Late for Work

    With all due respect I thank you for your opinions and responses thus far.

    Mr. Knowitall I do not believe it takes a rocket scientist to draft a company policy. I'm looking for the legal aspect as to whether or not imposing a fine and taking a deduction from an employee's earned commission is legal if an employee has signed and has agreed to accept the company policy.

    As far as being "above her pay grade" she is now a partner and owns part of the company so that statement is kind of ironic. In my reading I don't see how A.R.S. 26-361.02 applies.

    cbg. None of the employee's are being terminated for showing up late for their scheduled shift. But, the policy and the imposition of imposing a fine and deducting the fine from the employe's earned commission because of the bad behavior and the legalities of doing such is what I'm looking for.

    However, drafting a company policy such as this type while being clear and concise and having an employee sign and agreeing to the company policy of the terms and conditions being imposed is strictly on a voluntary basis. The employee will not have their arm twisted and will not be forced to sign and accept this company policy. However, I would believe and perhaps I maybe wrong. If an employee disagrees with a company policy the employee can always have a discussion with regard to the policy. But, if an employee refuses to to agree and and will not sign and agree to a company policy, I would believe it shall be considered a decision by the employee to self terminate their employment relationship with the company.

    Probably not the same but I'll utilize this example: If a door to door sales commissioned meat and poultry employee is provided with inventory and returns to the business at the end of the day to have an accounting of the inventory and sales revenue doesn't match up and product is missing I bet this employee has probably has agreed to a company policy to having his/her commission automatically deducted to pay for the missing product.

    DDSA

  7. #7
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    Default Re: Can Your Employer Make a Wage Deduction if You're Late for Work

    Quote Quoting DDSA
    View Post
    if an employee refuses to to agree and and will not sign and agree to a company policy, I would believe it shall be considered a decision by the employee to self terminate their employment relationship with the company.
    It would probably be considered a substantial change to the employment arrangement, and expose the business to UI claims. However, if the employees are low paid, they'll never be monetarily eligible so a nonissue, and there's going to be a fair percentage of employees that just don't know they can get UI in a situation like this.

  8. #8
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    Default Re: Can Your Employer Make a Wage Deduction if You're Late for Work

    You missed my point, which is that the employer has that option and may decide to use it.

    I'm not in favor of employers breaking the law. But think logically - which would you prefer, to be illegally fined, but still have a job or legally fired and not have one?

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