When I looked at the sales reports today, I noticed $50 worth of discounts. I matched the transaction time with the CCTV and caught her red handed applying all the discounts. $50 is a lot to us since this is 20% of our average daily sales.
I have no choice but to fire her now. Business is slow and we’re also a new business. Has anyone dealt with this in the past and am I legally allowed to deduct this from her final paycheck (Texas)? I know Reddit is the last place to go to for legal advice.
Depending on your state, you need to log this as a fraud charge against your employee and then offset the discrepancies as your loss for their activity.
Once the case is tried, then you can formally pursue the losses against your employee’s wages.
Did you have a rule on discounts? our rule was they cannot give discounts.
You can’t make deductions from employees’ wages unless agreed to in writing, authorized by state or federal statute, or ordered by a court (Texas Payday Law). For $50, let it go, and write it into an employment agreement signed by new hires that theft or unauthorized discounts can be taken from wages.
Friends or not do you have an option for offering discounts or the employee just created it? If you generally offer discounts I don’t see the problem, maybe she thought she was promoting your business if offering discounts is one of your options
You’re firing someone over $50? Not to mention, you’re looking at CCTV footage to “catch them red handed?”
Some people aren’t meant to be business owners…
No dude that’s mega illegal.
Did you set the expectation beforehand?
Also, was her business better than no business?
I’m not familiar with Texas specific law, but I believe deducting from their pay is illegal in all states.
And I understand it’s a high percentage of daily sales, but at the end of the day it’s $50. If $50 is going to brake your store, you were already broken.
Talk to the employee. Understand the situation, and make it clear what is or is not allowed.
Honestly your reaction to $50 worth of discounts, is a huge red flag. Maybe if you empowered your employees to make discount decisions, and help drive sales, you could have more sales. If you don’t trust your employees enough to do their job don’t have them.
And this is why everyone hates their job. Did you give the employee the discount as a benefit knowing they would probably not be able to actually use it at your store? If you intended on them using it what does it matter if they used it or their friends? Perhaps if you can’t afford to make good on a benefit you offer, you shouldn’t offer it in the first place.
If $50 is 20% of your daily sales, why do you have an employee at all?
No you can’t deduct that from their wages, unless you want to have bigger problems with the state.
Focus on getting your revenue up and not the $50.
$50 is cheap to rid yourself or a thief. If the opportunity had been there it would have been more.
I’m not well versed at all in this but if you’re a new business, you didn’t tell her not too, then she was probably trying to get you business and possibly gained you more than them not buying anything at all. I’d discuss this with her and be sure there’s no miscommunication.
Why do you have employees when your business makes $100 a day?
I’ve unfortunately had multiple employees steal money in different ways … my thoughts are it’s like mice in the house… if you see 1, you can bet there’s more! You can choose to tell yourself it was a one time thing, once the trust is gone you’ll always feel like somethings suspicious and be looking for dishonest things happening behind your back.
You said you matched the CCTV to “know” it was her. Indicating you did not even speak to her about this. Which, by the way, you would have done if you were anywhere close to a decent employer.
Do you have a hard policy in place about discount given to customers. You said $50, but didn’t say what percentage of thee sale that was. If it was 75% off, anyone would assume that’s unusual, if it was 25% or even 40% this close to the holiday…not so out of the question.
Maybe she wasn’t trying to be dishonest in the least. What kind of product this? An item the said customer could be back to purchase at a semi-regular interval? Maybe she offered an incentive to a reluctant friend to gain business thus you’ll make your $50 back plus. Maybe this customer has many friends that could be intimidated said product?
You either didn’t share, or didn’t bother to find out some important details. It seems you jumped to the assumption your employee is a liar and a thief. Which honestly says more about you than her.