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 is one in which one person agrees to assume the liability and risk that may arise from the obligation, and protects and indemnifies the other party against having to bear any loss. An indemnification or hold harmless agreement allows the other party to the contract to be reimbursed against loss or damage.
An employer may deduct the amount of cash shortages that are proven to be a result of theft or other misappropriation by the employee, even though such a deduction might take the employee below the minimum wage level; the employer bears the burden of proving that the employee was personally and directly responsible for the misappropriation (see Mayhue's Super Liquor Stores, Inc. v. Hodgson, 464 F.2d 1196 (5th Cir. 1972). Ordinary cash register shortages, losses of money due to ordinary negligence, and losses due to damage, destruction, or loss of equipment may not be deducted from the wages of employees to the extent that the deductions would take employees below minimum wage.
See also:
http://www.dol.gov/whd/regs/compliance/whdfs16.htm
To avoid future disputes, such an agreement should be detailed about the procedures for determining when a drawer is short and any exceptions that may apply.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
