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August 1, 2002

Are there federal or Ohio laws that restrict an employer's right to "dock" a terminated employee's final paycheck?

Yes. Unless an express, written contract exists between the employer and an employee permitting such deduction, it is illegal for an Ohio employer to make deductions from an employee's paycheck to cover the cost of items such as broken materials, damaged or destroyed tools or machinery, medical examinations required as a condition of employment, or any other amount that the employer believes the employee owes. An employer who violates this rule is guilty of a misdemeanor and may face fines for each violation. Notwithstanding these limitations, an employer may legally withhold amounts that represent prior amounts that represent prior overpayments of wages to the employee, such as advances on vacation pay.

In addition to the forgoing restrictions, federal law regulates the circumstances under which an employer may make deductions from the wages of employees performing work under federal contracts. Federal law also limits the circumstances under which deductions may be made that reduce an employee's pay below the minimum wage.

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