A clear policy helps employees in need without creating problems.
In this article
Policy
Written rules.
Limits
Amounts and frequency.
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Agreements
Signed.
Repayment
Clear schedule.
Legal rules
Wage laws.
A closer look
Technicians face car repairs and family emergencies. Owners want to help, but informal loans create confusion and resentment. A simple policy with limits and written agreements protects everyone.
Where to start
Write a short advance policy and review it with a payroll professional.
An example
A company created a policy allowing one advance per year with a signed repayment schedule. Requests became fair and simple.
Common mistakes
Informal loans, unequal treatment and illegal deductions.
What to track
Track advances outstanding.
Questions to ask
What limits are fair? Who approves? Does our policy follow state law?
Price every call so it pays.
We help service businesses set clear policies, book better jobs and turn more calls into profitable work.
Frequently asked questions
Can a company deduct a loan from an employee's paycheck?
Rules vary by state and wage laws. Written authorization is usually required, and deductions cannot reduce pay below legal minimums. Check with a payroll professional.