Many employers have encountered a situation where an employee quits, keeps company property, and refuses to give it back or return it damaged. While a disgruntled employee may hold these items of value from an employer, legally the employer may not withhold amounts for that employee’s paycheck without (1) that employee’s written consent after the loss occurred and before the deduction has taken place; or (2) a court order finding the employee guilty for the amount of the stolen or damaged property. In other words, if an employer wants to withhold funds from an employee’s paycheck for faulty workmanship, loss, theft, or damage, the employer must follow specific laws before making such withholdings.

Unless an employee is legally classified as an independent contractor, they are protected under the Wisconsin Statute§ 103.455, also known as the “Faulty Workmanship Law”. This statute also states the employee must be found guilty or be held liable in court of competent jurisdiction by reason of negligence, carelessness, or willful and intentional conduct if the employee doesn’t agree in writing to have amounts deducted from their wages.

If an employer does not act in accordance with this statute, they could be held liable for twice the amount of the deduction or credit taken in a civil action brought by the employee. Any agreement that was entered into between and employer and employee will be considered void if it contradicts this statute.

At OVB Law & Consulting, S.C. we have years of experience defending the employer, and fighting for the employee’s rights. Our skilled team of business litigators will fight for any damage brought upon to company property, or any wages being wrongfully withheld.