Pit Stop - Interest Taken Out of Check on Money Borrower's

Review by lezalewis28 on 2013-02-21
Rating: StarEmpty StarEmpty StarEmpty StarEmpty Star
AMARILLO, TEXAS -- I need to know if it's legal to take out interest when an employee takes a "draw". After one day, it's no longer the employer's money that the interest is coming out of. It's the employee's money (if he worked a 10 hr day). So, is this legal? If not, what can I do about it?
Comments:5 Replies - Latest reply on 2013-03-01
Posted by Nohandle on 2013-02-22:
Are you the lender or the borrower, employer or employee? I am uncertain by your review.
Posted by CUontheFlipSide on 2013-02-22:
The interest for a single day should be negligible. For instance, if you took $100 and they charged 24%, you'd owe something in the vicinity of 65 cents. If they are charging more than that it would be usury, and illegal.
As to what you can do about it?? How badly do you want that job?
Posted by BigAl on 2013-02-22:
You are not due your money until payday. Paytimes are discussed before hiring. By your logic your employer would owe you interest on each accrued days wages up until payday. What is apparently happening here is that your employer is charging you interest on money advanced to you prior to your scheduled payday. In some cases this is legal and in some cases it is not. Not enough information was provided to be sure of the correct answer. What it is though is pettiness from the employer. It sounds to me that it is done not to make extra money for the employer but to discourage employees from making this a habit. It does complicate payroll for the employer. But in the broader sense of the subject this should be a moot point if you are the employee. A confrontation over this subject will only have one of two results. Either advances will be eliminated or the job will be eliminated.
Posted by jktshff1 on 2013-02-22:
Sounds more like a loan rather than a draw
Posted by Skye on 2013-03-01:
I concur with jkt.

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