To deduct property damage from employees’ wages in Wisconsin, get it in writing
Q In Wisconsin, if an employee caused damage to a customer’s vehicle, can we deduct the cost from the employee’s paycheck without special consent?
The short answer: No, employers must have some form of written agreement with employees to deduct the cost of damages from an employee’s paycheck. Under Wisconsin law, employers are prohibited from making deductions from an employee’s earned wages for “defective or faulty workmanship, lost or stolen property or damage to property” unless certain conditions are met.
Specifically, under Wisconsin law, one of the following three things must occur:
· Written authorization. The employee, in writing, authorizes the employer to make the deduction.
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