Accidents can and do happen in any work environment. If you work in New Jersey and accidently damage workplace equipment, e.g., a printer, computer, camera, office furniture, mechanical and carpentry tools, ladder, furniture, etc., your employer can not make you pay for it and withhold your wages for the damaged equipment. The employer also cannot file a lawsuit against you to cover the cost of the damaged equipment.
Why Does the Law Protect Workers?
The law protects NJ workers from having to pay for accidently damaged equipment because it recognizes that accidents happen in any environment and that workers should not bear the financial burden of unforeseen events or normal wear and tear on equipment. The law also prevents employers from abusing their power and exploiting their workers by making them pay for things that are beyond their control.
The law reflects the principle that employers are responsible for providing and maintaining the equipment and work tools that are necessary for their business. All equipment has a projected lifespan which can be shortened if equipment is utilized excessively or operated improperly. Employers should factor in the cost of replacing or repairing equipment as part of their operating expenses and budget accordingly. Employers should also ensure that their equipment is safe, functional, and up to code, and that their workers are properly trained and supervised on how to use it.
What Does the Law Say?
NJ labor laws prohibit employers from taking deductions from a worker’s paycheck for things such as cash register shortages, breaking company equipment or failing to return their property. But note: employers may be authorized to take deductions under federal or state regulations in some rare instances. The general rule is your employer cannot withhold your wages, or sue you for the cost of broken equipment. The only exception to this rule is if you deliberately damage or steal employer property. In that instance, your employer is not without options and can file a legal complaint against you to recover the damages. However, your employer must have clear evidence that you acted intentionally, dishonestly or with gross negligence, such as a witness statement, a video recording, or an uncoerced admission from you.
NJ has strict rules as to what payroll withholdings are legal. Some employers might be tempted to make illegal unauthorized payroll deductions on a worker’s paycheck to pay for the broken equipment. Sometimes this may be due to ignorance, or it could be deliberate in the hope that the authorities and the worker won’t notice the deduction. If employers withhold such wages, they are engaging in illicit activity. Under New Jersey Wage and Hour Law on the withholding from wages, N.J.S.A. § 34:11-4.4 clearly defines what deductions may be made to an employee’s paycheck. It stipulates that no employer may withhold or divert any portion of an employee’s wages unless the amounts withheld or diverted are for specific purposes as defined in the statute.
Professional Certification and Licensing
A prospective employer generally can require an applicant to earn/obtain any applicable professional certifications or licenses at the worker’s own expense before accepting the employment position. It is the worker’s obligation to maintain such license or certification at the worker’s own expense thereafter. Employers cannot withhold money from the employee’s paycheck to cover professional certification or licensing costs.
Company Work Uniforms
It’s generally unlawful for a New Jersey employer to require employees to pay for company issued uniforms or uniform maintenance. See below, Wage Payment Law, N.J.S.A. §34:11-4.4b(6) which describes how employees subject to collective bargaining agreements may agree to cover the cost of renting or maintaining uniforms and lawful paycheck deductions in such instances.
Withholdings Permitted by Collective Bargaining Agreement, Such as for Thrift Plans, Pensions, IRA’s
The State’s Wage Payment Law, N.J.S.A.§ 34:11-4.4 b (1), (2), (6), (7), (8) describes that employees working under a Collective Bargaining Agreement are subject to certain withholdings under that Agreement. These include in part:
Contributions authorized either in writing by employees, or under a collective bargaining agreement, to employee welfare, insurance, hospitalization, medical or surgical or both, pension, retirement, and profit-sharing plans, and to plans establishing individual retirement annuities...
Contributions authorized either in writing by employees, or under a collective bargaining agreement, for payment into company-operated thrift plans; or security option or security purchase plans to buy securities of the employing corporation, an affiliated corporation, or other corporations at market price or less...
Payments authorized by employees or their collective bargaining agents for the rental of work clothing or uniforms or for the laundering or dry cleaning of work clothing or uniforms; provided the deductions for such payments are approved by the employer...
Labor organization dues and initiation fees, and such other labor organization charges permitted by law...
Contributions authorized in writing by employees, pursuant to a collective bargaining agreement, to a political committee, continuing political committee, or both, as defined in section 3 of P.L.1973, c.83 (C.19:44A-3)..
Payroll Withholdings Are Not Employer Discretionary
New Jersey employers may believe there are many types of deductions that that they can take at their own discretion when in fact they are not legally authorized to do so. Whether it is due to ignorance of the law, or by deliberate intention, hoping you will not notice and they won’t get caught, it is illicit activity.
What You Can Do
If you believe that your employer is unlawfully withholding your wages, you should contact an experienced employment law attorney. I am an aggressive and compassionate employment law attorney who is experienced in successfully representing employees in wage disputes.
If you are being subjected to such illicit activity, contact Hope A. Lang, Attorney at Law today for a free consultation. I accept employment cases from all over New Jersey.
Hope A. Lang, Attorney at Law represents workers throughout the entire state, including Hackensack, Jersey City, Newark, Irvington, Orange, East Orange, Trenton, Paterson, Montclair, Elizabeth, North Brunswick, Cherry Hill, Vineland, Union, Plainfield, Hamilton Township, Lakewood, Edison, Parsippany-Troy Hills, Franklin, Lakewood, and every NJ County, including Bergen, Hudson, Middlesex, Essex, Monmouth, Somerset, Ocean, Union, Camden, Passaic, Morris, Gloucester, Atlantic, Burlington, Camden Counties.