Hey, that’s mine! How WV employers may recoup costs of unreturned property

When losing an employee, either by discharge or resignation, companies often run the risk of losing something else too: company property. However, if this occurs, West Virginia employers should never worry about how their business will cover the costs of replacing an asset not returned by a former employee. Instead, they should look to W. Va. Code § 21-5-4(f)(1) as an easy means of recouping the costs. Read on for a brief explanation of how to recover the costs of unreturned company property through deductions to an employee’s final paycheck.

Authorized deductions

Since 2018, West Virginia employers have been statutorily authorized to “withhold, deduct, or divert an employee’s final wages” to recover the amount of replacement costs of any unreturned employer-provided property. The statute covers all property that has been provided by an employer to their employee “for use in the employer’s business,” including but not limited to, “equipment, phone[s], computer[s], supplies, or uniforms.” For example, if a former employee fails to return a work computer following their termination, employers in West Virginia are permitted to deduct the cost of replacing the computer from the employee’s final pay.

Like most laws, however, this authorization isn’t unlimited. You are only permitted to make these final wage deductions when: