Labor: Employer not authorized to deduct cash advance

Hearing Officer Herbert D. Soll said  any advance of money made not in the normal course of the worker’s employment cannot be mixed with the hourly wages that an employee has the right to collect.

Investigation showed that TKL Enterprises Inc. management withheld $189.34 in net salary payment of Rasalingam Kanagasabai because the worker failed to account for the money to purchase auto parts.

During the hearing, the company’s general manager Wang Na testified that Kanagasabai was given $300 to purchase auto parts for use on a company vehicle but failed to supply receipt for the money.

In his order dated Oct. 27, Soll said Kanagasabai can take from the company $189.34 and an equal amount in liquidated damages for $378.68.

That amount, Soll said, is due and owing on the part of the company and will be paid upon demand. “Failure to pay entitles the complainant to bring a claim for relief before the hearing office,” Soll added.

Labor also granted Kanagasabai an opportunity to transfer to another employer if he registers with the Division of Employment Services and Training within seven days upon receipt of the order.

Kanagasabai began working for American Joint Partners in 2001, and he renewed his contract each year until 2007 when there was some changes in the management in the company.

TKL Enterprises took over the company and retained all the employees.

According to Labor’s investigation, Kanagasabai worked beyond the validity of his permit and he admitted receiving his wages until March 2007 when he complained that wages were not paid.

He said company didn’t give him salary from March 8 to June 18.

The company’s stock manager told him not to work any longer after they argued about wages.

Kanagasabai then considered the result of the spat with the stock manager to be a termination.

He did not return to work after June 18 but admitted that several of his co-workers visited him at his home.

Soll said Kanagasabai was not terminated on June 18 but that the worker did not intend to return to work.

“He was terminated as of July 2, 2007, after several attempts to get him to return, and the termination was justified,” Soll said.

However, Soll said the condition in which Kanagasabai was found in June can be described as a disturbed state of mind and this “justifies allowing him a period of time to find another employer.”

 

 

 

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