May 2024 Q&A Roundup

Q         We loaned an at-will employee money as an advance, and they signed a repayment agreement that said if their employment ended before the loan was fully repaid, the remaining balance would be deducted from their final paycheck. What do we do if the remaining balance exceeds the total amount of the final paycheck?

To further collect on an employee loan of this type in Iowa, you would normally be required to file a court claim and receive a judgment. Once you had a judgment, you could then act on it by requesting a garnishment or attaching other assets. If by “advance” you mean an advance on wages, there can also be other issues. Note that agreements of this type can sometimes implicate wage and hour concerns if the Department of Labor (DOL) finds they were entered into incorrectly.

Q         We provide laptop computers to all our personnel. Many employees damage them during employment or return them with damage upon leaving employment. What are our options for recouping from employees the costs of repairing or replacing the damaged employer-owned materials?