Wage deductions: Can they be used to offset property damage?

Q           Our expenses have increased because of damaged company property that we’ve had to repair or replace, so we’d like to implement a policy of making deductions from employees’ paychecks for the damages. Do we need to obtain written consent from employees, or would the deductions still be prohibited?

That wouldn’t be permitted under New Hampshire wage laws, even with employees’ consent, because RSA 275:48 outlines when, how, and to what extent employers may withhold from employees’ wages. There’s a list of permitted withholdings, including rental fees for non-required clothing (meaning not uniforms) or voluntary cleaning of uniforms or non-required clothing, but wage withholdings for the loss, repair, or destruction of uniforms aren’t permitted.

Though the statute does have a separate catch-all provision that allows employers and employees to agree on a withholding for a purpose that isn’t listed under permitted withholdings, it can’t be for anything that grants the employer a financial advantage, and the withholding, even with the employee’s consent, can’t be used to offset payments for purchasing items required for the employee’s job in the ordinary course of business operations.