Illinois Employer Charging for Lost or Damaged Equipment

In Illinois, an employer cannot deduct money from an employee’s paycheck because a cash or inventory shortage arose during their shift or the employee caused damage to or loss of the employer’s equipment or property.

There is one exception in equipment deduction laws and that is if the employee has signed a written agreement in which the employee expressly agrees that they would pay for any loss of or damage to their employer’s equipment.

They would also have to agree that the amount of such a loss can be deducted from their paycheck. If there is such a written agreement, then the employer can make the deductions. The agreement must be in effect at the time any paycheck deduction is made.

In addition, Illinois law requires the employer to provide each employee with an itemized statement of the deductions made from their paycheck for each pay period. So, if an employer were to make deductions for loss of or damage to equipment as allowed by a written agreement with the employee, the employer would have to provide an itemized statement showing the deduction made for that reason.

Again, if the deductions are supposed to continue over a period of time and the written agreement states that it is in effect for the period of time specified, the agreement is considered to be effective at the time a deduction is made.

An agreement that allows deductions to be made over a defined period of time may not last for a period of time that is longer than 6 months. An Illinois lawyer would be able to explain Illinois law regarding deductions for an employer’s lost or damaged equipment.

Generally speaking, the law regarding deductions for loss of or damage to equipment would not apply to independent contractors. That is because an independent contractor, by definition, should supply the equipment they need to do their work. The contractor would, thus, be responsible for any damage done to their equipment.

In Illinois and most other states, if a company provides all of the tools needed to do a job, the worker would not be an independent contractor. They would be an employee, and the rules regarding deductions relating to equipment would apply.

In Illinois, Can Employers Force Payment to Cover the Loss?

Again, an employer cannot legally force an employee to pay for losses, even those the employee may have caused. For example, as noted above, even if an employee causes the loss of a piece of equipment or damages some equipment, the employer cannot force the employee to pay to cover the loss.

An employer cannot force an employee to sign an agreement that obligates the employee to pay for losses related to the employer’s equipment. An employer cannot force an employee to sign an agreement agreeing to paycheck deductions to cover losses to the employer’s equipment.

What Are the Illinois State Laws About Charging Employees for Damaged or Lost Property?

Of course, employers may make certain deductions from the paychecks of their employees, e.g., for state and federal taxes. As noted above, they can make deductions for lost or damaged property only if the employee has signed a written agreement in which they have expressly indicated that they agree to pay for lost or damaged property through paycheck deductions made for that purpose.

In addition, an employer may make certain deductions from an employee’s pay, but the law mandates that each employee be provided with an itemized statement of any deductions for each pay period. Deductions are allowed as follows:

• If they are required by law, e.g., deductions for local, state and federal income taxes can be made.
• If they are made for the benefit of the employee for such things as the payment of health insurance premiums, union dues, and the like, deductions are allowed.
• If the employee owes child support, federal law allows a government agency or the person to whom the support is owed to garnish the employee’s wages without a court judgment. Court orders for child support usually include an income withholding order. This is sent to the debtor’s employer. Then the specified amount can be deducted from every paycheck.
• Garnishment of wages for unpaid federal student loan debt and unpaid taxes owed are allowed in Illinois. There are limits on the amount that can be deducted from each paycheck.

In addition, an employer cannot withhold earned vacation or wages or any final compensation because the employee did not give notice that they were terminating their employment. Again, the fact that Illinois is an at-will employment state means that the employee may terminate their employment at any time and for any reason.

In addition, an employer may not withhold earned vacation, wages or any final compensation for the reason that the termination of employment was not voluntary on the part of the employee. An employer may not make withholdings because the employer may have failed to return equipment, uniforms, telephones, pagers or other items used by the employee during their employment that belong to the employer.

The fact that an employee accepts a disputed paycheck with a deduction, their acceptance cannot be used against them as evidence that the employee accepted the deduction.

Is It Legal for My Employer to Fire Me for Lying on a Job Application or Resume in Illinois?

Under Illinois and federal employment law, an employer may fire an employee for lying on a job application or a resume in Illinois. Illinois is what is called an “at-will” state. This means that employers, and employees also, may terminate an employee’s employment for any reason.

Lying on an application can also sometimes create issues with equipment, especially if the person has made misrepresentations about their qualifications to handle certain equipment. If an independent contractor lies about their qualifications or experience regarding equipment, the hiring party may have grounds to terminate the contract or pursue remedies for breach of contract or fraud.

There are exceptions. If a worker is fired for any of the following reasons, the termination might be wrongful.

• The termination amounted to employment discrimination, because it was motivated by the employee’s membership in a protected class, e.g., because of their race, religion, gender, sexual orientation, age or disability.
• The employee had a contract which specified when and for what they could be terminated and the firing breached the contract.
• The firing was done in retaliation for the employee’s exercise of their rights.
• The firing was motivated by the employee’s engagement in such protected activities as filing a claim for workers’ compensation, reporting illegal conduct on the part of the employer, whistleblowing or cooperating with a criminal investigation.

An Illinois lawyer consultation would help a person understand at-will employment and the exceptions recognized by Illinois and federal law.

However, again, an employer may fire an employee for lying on their job application. An employer may fire an employee because their company needs to cut its expenses or has found the employee’s performance to be deficient. An employer can fire an employee for any reason other than those noted above.

Do I Need a Lawyer if My Illinois Employer Charges Me for Lost or Damaged Equipment?

If your employer has made deductions from your paycheck that you do not understand or think are unfair, you want to talk to an Illinois employment law attorney. Your lawyer can review the facts of your situation and tell you whether or not your employer was legally allowed to make the deductions.

If your employer has made deductions that they are not allowed to make, your lawyer can guide you through the legal process for recovering money that has been unlawfully taken from your paycheck.