You Be the Judge

Employee Loans

Your company has loaned an employee $2,000 for personal use. When he was laid off, the company deducted the balance due ($1,000) on the loan from his final paycheck.

Answer:

This is not legal. Under California law, an employee must be paid all wages final wages "without abatement or reduction." By illegally deducting the loan balance from the final pay, at a minimum the employer will be exposed to Department of Labor Waiting Time Penalties of up to 6 weeks wages.

For further information, contact cordell@dcordell.com.

 

 

 

 

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Monday
Jan142013

Victory in Workers Comp Classification Dispute

Do you dispute your worker’s compensation audit premiums or the classification assigned to your employees?  Such disputes are common—but are rarely resolved in favor of the employer. 

There is cause for hope, however.  Dolores recently prevailed in a client’s workers compensation classification dispute.  The change in classification would have caused a 4 or 5 fold increase of the employer’s premiums—forever

By researching and vigorously arguing the broader legal (not just administrative) issues involved, Dolores was able to convince the Workers Compensation Insurance Rating Bureau to reverse their classification decision, thus saving the client literally hundreds of thousands of dollars over the years.