Full question:
I own a check cashing business, I would like a Employee contract, that holds the Employee responsible for her cash drawer being short and that if The Owner and Manager cannot find that money he or she has to pay it back to the company.
- Category: Contracts
- Subcategory: Indemnity
- Date:
- State: California
Answer:
A hold harmless agreement allows one party to assume liability and risk, protecting the other party from loss. In the context of employment, an employer can deduct cash shortages linked to theft or misappropriation by the employee, but must prove that the employee is directly responsible (see Mayhue's Super Liquor Stores, Inc. v. Hodgson, 464 F.2d 1196 (5th Cir. 1972)). However, deductions for ordinary cash register shortages or losses due to negligence cannot reduce an employee's pay below the minimum wage. For clarity and to avoid disputes, the agreement should detail the procedures for identifying cash drawer shortages and any applicable exceptions.
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