Q: At the time of hire, each new employee signs a receipt for our Policy Manual, which provides that any employees handling cash who are short in their bank may have the amount of that shortage deducted from their paycheck. Is this permissible under Nevada law?
A: Nevada law permits deductions from employee wages only where the deduction is “authorized by written order of an employee.” Although the statute is not clear on this, the Nevada Labor Commissioner has taken the position that a blanket authorization signed at the time of hire is not valid. Therefore, a signed written authorization specifying the precise amount to be deducted from each particular paycheck must be signed by the employee on a case-by-case basis.
The Nevada Labor Commission has placed even greater limitations on an employer’s ability to deduct from an employee’s paycheck. Based on other words in the statute, the Nevada Labor Commissioner has taken a position that even with a specific written authorization, the wage deduction is not proper unless the deduction is “for the benefit of the employee.” The Labor Commission interprets this to mean that wage deductions for union dues, health insurance premiums or savings plans are proper, while the deductions for cash shortages are not. The Labor Commissioner does not at this time distinguish between the situation where the employees are covered by a collective bargaining agreement which specifically permits such deductions. At press time for this issue, two Clark County District Court judges have held that deductions from employees wages for cash shortages are not permitted by the statute, and those cases are currently pending before the Nevada Supreme Court.
Employers who wish to continue making cash deductions, even while the law is unclear in this area, should first check with their own legal counsel and also be sure that the employee’s responsibility for the cash shortage is clearly established. It is also a prudent course that each deduction from wages be supported by a signed written authorization by the employee.
Q: An employee has asked to see his entire personnel file. Does the employee have the right to see every document in his/her personnel file?
A: The statutory sections describing employee access to personnel files have never contained the precise terms “personnel files.” The statute speaks of “records regarding employment.” Those records are described in the statute as including records used to determine the qualification of an employee and any disciplinary action against an employee, including termination. Specifically excluded from that definition of records that must be made available to employees are confidential reports from previous employers or investigative agencies and information concerning the investigation, arrest or conviction of that person for violation of any law, and confidential investigative files concerning the employee.
A legitimate concern of any employer is that certain information regarding investigations of employee misconduct not be made available to the employee either during or after employment has ended. Thus, employers may set up and maintain a confidential investigative file, which need not be produced to the employee. However, even after a confidential investigation, in the event discipline is imposed on an employee, a record summarizing the action taken and why it was taken should be included in the regular personnel file. That item would continue to be available for inspection by the employee.
A former employee may inspect his/her file if requested within 60 days of termination. Employees or former employees who have been employed for more than 60 days may request copies of the inspected documents. An employer may charge an amount equal to the actual cost of providing access to and copies of the records.
Q: Can I refuse to hire someone who is a smoker or who drinks alcoholic beverages?
A: Employers are prohibited from refusing to hire an applicant or discharging or otherwise discriminating against any employee because he/she engages in the lawful use in Nevada of any product outside the premises of the employer during his or her non-working hours, if that use does not adversely affect his/her ability to perform his/her job or the safety of other employees. Therefore, an employer cannot refuse to hire an applicant or otherwise discriminate against an employee because he or she is a smoker or drinks alcohol. Employers also should keep this statute in mind if and when the laws regulating marijuana and other currently illegal drugs are modified.