Granted, there are gray areas in employment law. But it doesn’t take an HR pro to know you can’t deduct wages without workers’ prior knowledge or consent. Still, that didn’t stop one employer from trying to get away with it.
What happened: Contractor Bun Thuon Lam tried to take advantage of five immigrant workers’ lack of knowledge of employment law. He deducted wages, paid less than the minimum wage and withheld pay for months at a time. The workers sensed something wasn’t right ……. And blew the whistle.
Penalty: Mr. Lam had to make reparations to the tune of $31,868 and pay $5,000 in penalties. He was ordered to pay each of the workers around $7,000.
Word of Advice: The DOL’s representative said this was a “serious breach of the law”. And went on to say, “minimum rights are there for a reason – to protect employers and employees. If they are not complied with, employers can expect a visit from a Labour Inspector and possible follow-up action.”
In Nevada most employees would readily recognize any efforts by employers to “withhold pay for months at a time,” but how many employers realize that written consent from an employee is a must if any type of wage deduction is to hold up in the courts by the employer. AdvanStaff’s HR and Payroll departments are available to address any “gray areas” regarding wage deductions.