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Question about bonds?
I signed a bond when I started with this company and they have been deducting money from my paycheck until 5% is set aside. My understanding was that it was for theft prevention or maybe damage or such.
Recently a situation has come to light where the company has deemed me liable for something and they are saying that I have to pay out whatever is involved in it. Basically, a person is suing the company supposedly for something I did incorrect (I did it the way I was trained, but that is neither here nor there). The company is saying that I am liable for all expenses related, including if the person settles, I will need to pay out the settlement money from my bond. They are also saying that if it goes into legal fees, I will be liable for those as well. (It is small claims court)
Is this right? Can a company do that?
Let's just say theoretically that I did do it wrong. I don't think so, but is it legal to make me financially liable for legal fees?
It's hard to walk away from the job because the pay is really good and there are other things about it that work for me in my current life situation.
But I have just never ever heard of a company requiring an employee to pay out legal fees and settlement amounts.
I thought the bond would be for theft or damage to property or some such, not legal stuff.
3 Answers
- KevinMLv 78 years agoFavorite Answer
And you're an EMPLOYEE of this company - not an independent contractor like a real estate agent or something like that?
If you're actually an employee, this is absurd. Find another job.
Ed: If you are truly an employee, then the employer is responsible for this unless you committed fraud or some other crime of deception.
If you were - for example, a real estate agent working at a Re-Max office, then you're NOT an employee - you are an independent contractor and responsible for your own business. Do you pay estimated taxes and self-employment taxes? If not, then you should not be responsible for this.
- Lone CatLv 78 years ago
When the employee does something correctly and there's a profit, then the owner keeps the profit. When the employee does something wrong, then the owner gets the loss. It's a basic business principal that goes back thousands of years. And every country on earth has laws that support this.
It would become impossible for anyone to work. Imagine some one who's making 120 a week at a fast food place, and he breaks a $10,000 dollar machine. No one can afford that kind of liability.
Even if your boss had you sign a contract or waivor, a judge would rule that such a waiver is illegal.
The place to start is the department of labor web site. http://www.dol.gov/
Then i would tell my boss that I'm unwilling to accept the loss without any possibility for profit. When you decide to share your profits, then we can talk about sharing in the loss.
In addition, I think it might be illegal for your boss to ask you to pay part of the bond. I think that part is also on the owner. I could be wrong about that.
- 8 years ago
No it is not legal, No a company can not do that.
If you truely did what you were trained to do, the liability is 100% on the company. If i work for XYZ pizza company and I am trained to put an "unknown" powder, that they swear is normall, in the sauce and someone dies from it, XYZ pizza is liable for using the powder, not me.
