Business and Economics

Payroll Deductions Bill Passes Indiana House

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February 10, 2015 — TheStatehouseFile.com

INDIANAPOLIS – Certain work-related fees, including cost of uniforms and required education costs, could be taken out of employees’ paychecks if a bill that passed the Indiana House on Monday becomes law.

Instead of requiring employees to pay out of pocket, House Bill 1469, authored by Rep. David Ober, R-Albion, allows for employers to take fees out of their paychecks. These costs include the purchase, rental or use of uniforms or equipment, reimbursement for education or employee skills training, and advance for payroll or vacation pay or meals eaten by the employee at work.

The legislation also provides that employers who fail to pay their staff on time may be subject to damages, court costs, and reasonable fees for an attorney’s costs of recouping the money.

The bill passed 69- 29, but not without some controversy.

Rep. Pat Bauer, D-South Bend, said he opposed the bill because the legislature was trying to “fix something that’s not broken.” Rep. Dan Forestal, D-Indianapolis, said the middle class is already struggling and it is not the time to draw money out of their payments.

But Rep. Jerry Torr, R-Carmel, said that “in my experience, where I have seen this used, is always been something that is more beneficial to the employee himself, then the employers.

“The employer provides this as a convenience to the employee,” he said.

The bill now moves to the Senate for further consideration.

 

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