Understanding Paycheck Deductions for Register Shortages Without Consent

Have you ever found yourself in a situation where your employer deducted money from your paycheck without your consent because of a register shortage? This article explores the legality of such practices in the United States and provides insights based on a real-life example from Illinois.

Legality of Paycheck Deductions in Illinois

It is crucial to understand that the legality of paycheck deductions for register shortages varies by state. For instance, in the State of Illinois, it is illegal for an employer to deduct money from an employee's paycheck unless the deduction is based on a court order or the employee has explicitly authorized the deduction at the time it occurs.

The Wage Payment and Collection Act governs these deductions. This law ensures that if an employer withholds a paycheck or makes an illegal deduction, the employee can file a claim with the Illinois Department of Labor. The consequences for the employer can be severe:

Penalties and fines Interest on late payments Misdemeanor convictions for company officers involved in the violation, including supervisors or HR representatives

These convications can remain on the criminal history of involved individuals for life.

A Lesson from the Past

Looking back to the early 1970s, I had the opportunity to work at a fast food establishment, Arby's. At the orientation, the manager explained a unique system where register shortages were distributed among all employees who worked on that day. I, as a naive but inquisitive college student, asked whether all employees also shared the profits from overages. Unfortunately, the answer was no, and I was told that I needed to keep a positive attitude.

What was actually happening was that the company was trying to avoid responsibility by distributing the burden among all employees. Overages, while rare, are often indicative of theft rather than genuine overperformance.

Company Practices and Accountability

Companies like Arby's, or in modern times, any employer that implements a "total register accountability" system, can hold employees fully responsible for shortages. However, it is important to note that not all employers are fair or knowledgeable. Some might unfairly hold individuals accountable for shortages without proper oversight or auditing.

In conclusion, while employers do have the right to ensure accurate financial records, it is essential for them to follow legal and ethical guidelines. Employees have the right to seek recourse if their paychecks are unfairly deducted, and companies should adhere to the Wage Payment and Collection Act to avoid any legal complications.