Overview: Governor Jim Justice of West Virginia has signed into law House Bill 2546 (H2546). House Bill 2546 amends the Wage Payment and Collections Act to provide that if an employee fails to return an employer's property, the employer may withhold or deduct from the employee's final wages an amount not to exceed the replacement cost of the employer-provided property.
Effective Date: May 15, 2018.
Details: H2546 provides that if an employee fails to return an employer's property, such as equipment, phone, computer, supplies or uniforms, at the time of discharge or resignation, the employer may withhold or deduct from the employee's final wages an amount not to exceed the replacement cost of the employer-provided property.
The employer is required to provide written notice to the employee at the time of termination as to the replacement cost of the items and to make a demand for the return of the property with a deadline of no more than 10 days after the date of the notice. Employees must be reimbursed if they return property, equipment, supplies, and uniforms in suitable condition by the deadline. If uniforms are returned within 3 years after they were provided they will be considered to be in acceptable condition.
In order for the employer to deduct the wages from the terminating employee, the following requirements must be met:
1. the property was provided for use in the employer's business;
2. the value of the property is in excess of $100; and
3. the employee had signed a written agreement with the employer at the time the property was given to the employee. The written agreement must have specified the replacement cost for each item of property, stated that the items must be returned at the time of termination of employment, and clearly noted, coupled with the employee's acknowledgement, that the replacement cost of the item may be recovered from final wages.
For a copy of H2546 please click on the link provided below: http://www.wvlegislature.gov/Bill_Status/bills_history.cfm?INPUT=2546&year=2018&sessiontype=RS
Call to Action: West Virginia employers should revise applicable policies in accordance with the amended law, and train HR and payroll professionals on the amended law. Please contact your Service Team with any questions.