If you work in HR or payroll in Indiana, you probably know that Indiana is very pro-employee when it comes to pay. There are two separate statutes which require pay to be made in a timely manner (IC 22-2-5-1 and 22-2-9-1). If you don’t pay timely, you can be sued for three times the amount plus attorney fees.
However, there are times when you might not pay an employee even when you know these laws exist. For example, let’s say you know that a certain employee has stolen $7,500 from you through misuse of a company credit card. You are certain of the thefts and you have a bullet-proof policy against this misappropriation. Let’s also say you owe the employee $2,000 in a final paycheck. In this instance, I have advised clients to strongly consider telling the stealing employee, “Pound sand, we aren’t paying you. Feel free to sue for the wages and the treble damages because we intend to sue you for the thefts and treble damages under the Indiana crime victim’s act, which also provides for treble damages and attorney fees.” So. the employee may sue for three X $2,000 but you will counterclaim for three X $7,500, both plus attorney fees.
