Car Repairs-Employee Payroll Deductions

Dealerships, in general, have a policy whereby employees may have their cars repaired at the dealership with the understanding that the costs of the repairs may be deducted from their paychecks over a given period of time. The problem that arises is when an employee leaves the company prior to the entire cost of the repairs being deducted. Normally, the dealership will accelerate the remaining balance from the final check. This is a mistake. The Labor Board has consistently taken  the position that the remaining balance cannot be accelerated, even if it is in writing. They expect the employer to treat the employee as they would any other individual, or entity, that they have extended credit to. If the payroll deductions were weekly, as an example, you have to bill the employee weekly after they leave. If they fail to pay, your remedy is small claims court (yeah-right!). My advice is not to have the deductions longer than one or two payrolls if you have such a policy in place.