Considering payroll deductions for speeding tickets in company vehicles? Think again

Q           Our employees drive vehicles strictly for work purposes, but we don’t have a policy on such use. After employees received several speeding tickets, we’d like to introduce a policy that would allow management to deduct the cost of tickets from employees’ wages. Are we allowed to start introducing this type of payroll deduction?

Introducing a blanket payroll deduction could be problematic. The law of the state where the employee works usually governs payroll deduction requirements, but federal law also influences this matter. You may hold an employee accountable for their driving transgressions through discipline, seeking reimbursement for the ticket, or both. Before you deduct the amount of the ticket from the employee’s paycheck, however, they may have to agree, depending on the state’s laws.

For example, in West Virginia, an employee must provide an advance written assignment of wages before an employer can deduct anything other than authorized statutory deductions from an employee’s wages. The wage assignment must specify the total amount due and collectible, must be signed by the employee, and must be notarized. Additionally, an employer cannot deduct more than 25% of an employee’s net earnings.