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Re: Company - Personal Loans

Lighthouse24 — Tue, 27 Nov 2007 23:03:04 GMT

I see that this question is answered, but I'll add that the loan is essentially an employee benefit. You compensate employees (per your policy) for hours worked, including overtime -- and your records reflect that. You then deduct things like taxes, recreational facility charges, retirement plan contributions, etc. from their gross pay. An employee loan repayment is handled the same way. (Lots of companies, including mine, make loans to employees for specific purchases like computers).

Re: Company - Personal Loans

HRVegas — Tue, 27 Nov 2007 21:57:21 GMT

I think you answered my question scsurfguy. Many thanks!!!!

Re: Company - Personal Loans

HRVegas — Tue, 27 Nov 2007 21:55:26 GMT

Thank you FashionGal!

Re: Company - Personal Loans

scsurfguy — Tue, 27 Nov 2007 21:49:31 GMT

Depending on the situation and the company. If you are a large company than yes, because anything over 40 hrs a week, the law states you have to pay overtime and you have to add that to the payroll, but the money will be deducted back into the company account. "If" there was an agreement signed take back your money. If no paperwork was initialed or signed by the employee and they work extra and don't get paid then they can come after you for back pay. If its completely off the "record" and you trust them to not come back at you, then make them work weekends until the debt is paid. Its really there responsibility to pay you back for a service you provided them. Make sure you have them sign something just in case saying that they will work extra hours non pay, something like interning or volunteer work. Just make sure you cannot get hurt with a lawsuit by that individual saying you did not pay them for their work. Be careful!!

Re: Company - Personal Loans

FashionGal — Tue, 27 Nov 2007 21:44:09 GMT

That's a great question. Is it company policy to give out personal loans in the first place? My guess is that it's probably not documented on what to do, thus your question in the forum! I think the most important thing to consider is - ensuring the employee is fully aware of the implications (e.g. overtime or no overtime pay) and you probably want to minimize their extra hours anyway, as working too many hours a week could be counterproductive for them and your company!

Company - Personal Loans

HRVegas — Tue, 27 Nov 2007 21:34:48 GMT

If an employee borrowed money from the company and wants to pay it off by working extra hours (on top of their 40hrs a week), would the time and a half policy go in effect against the loan?

Hope that makes sense.

Thanks all! Cheers!

HRVegas
(Las Vegas, NV)