Opinion ID: 2631872
Heading Depth: 2
Heading Rank: 2

Heading: The validity of the written authorization

Text: In this case, Meranian testified that she signed the shortage withholding authorizations. She also acknowledged receiving and signing the pre-employment form outlining Orlean's cash shortage withholding policy. However, Meranian stated that she only signed the withholding authorizations because she believed she would be terminated immediately if she refused to sign the authorizations or contested responsibility for the shortages. When asked why she held this belief, Meranian testified that it was not based upon anything she was told by anyone at the Orleans, she just assumed that she would be fired if she did not sign the slips. The hearing officer concluded that the pre-loss or blanket authorization was not a knowing and intelligent waiver of Meranian's right to receive full pay. We agree. The language in the pre-employment form describing the conditions of hire and agreement to the cash shortage reimbursement policy cannot authorize deductions for cash shortages that may or may not occur in the future. However, the hearing officer further concluded that Meranian signed the shortage slips involuntarily and that the shortage slips were not a valid written authorization pursuant to NRS 608.110 because Meranian subjectively believed that she could not contest responsibility for the shortages and would be terminated for refusing to sign the shortage slips. Employees in Nevada are presumed to be employed at-will. [15] The at-will rule gives the employer the right to discharge an employee for any reason, subject to limited public policy exceptions. [16] Requiring an employee to reimburse an employer for cash shortages attributable to the employee does not contravene any public policy. As noted by the New Jersey Court of Appeals, the policy of holding [employees] liable for their shortages does not contravene public policy or established law because [s]hortages are almost invariably due to the negligence or dishonesty of the employee, [and][i]t is a fundamental rule in the law of agency that an ... employee is generally liable to ... [the] employer for loss sustained by the [employer] due to the [employee's] negligence or [misappropriation]. [17] Thus an employer can require an at-will employee to reimburse the employer for losses caused by the employee and terminate an employee who refuses to agree to the reimbursement. NRS 608.110 contemplates a written authorization that is voluntary, and where specific facts of a particular case indicate that an employee did not voluntarily sign a shortage slip authorizing the wage deduction, such withholding would not be permissible under the statute. However, the mere fact that an employer has a policy that requires employees to repay cash shortages for which they are responsible and may terminate an employee for failing to comply with that policy does not render a written authorization invalid. Accordingly, we conclude that the hearing officer misconstrued the statute and erred in finding that the shortage slips signed by Meranian were invalid based on Meranian's subjective beliefs concerning termination. Finally, the hearing officer determined that Meranian's written authorization was invalid because Orleans presented insufficient evidence demonstrating Meranian was responsible for the shortages. By inference, the hearing officer found that Orleans was essentially requiring Meranian to insure it against losses. While we agree that employees cannot be required to insure employers against losses, we conclude that the hearing officer's determination that Orleans presented insufficient evidence of Meranian's responsibility for the cash shortages was erroneous. Here, the Orleans' representative indicated that an employee can dispute responsibility for a cash shortage and that an investigation, which may include disciplinary action, occurs following all shortages. Meranian indicated that she was placed in charge of a cash drawer containing $50,000.00 at the beginning of each shift. Further, Orleans' policy required cage cashiers to count the money in their drawers at the beginning of each shift and to lock their drawer whenever they were away from it. Meranian alleged that her supervisors did not always follow casino policy for handling cash drawers and she could not recall details from the days in question. Additionally, although Meranian did state that the $20.00 shortage had not occurred on her shift, she did not challenge her supervisor's determination that she was responsible for the shortage and she signed the shortage slip. Finally, Meranian could not account for the $500.00 shortage, and she acknowledged that it occurred during her shift. Thus, the record reveals that Orleans had a reasonable basis for determining that Meranian was responsible for the cash shortages and that its determination that she was responsible for the cash shortages was not arbitrary. Accordingly we conclude that the hearing officer used an erroneous standard in determining the validity of Meranian's written authorization. Although the hearing officer may disagree with an employer's determination regarding responsibility for a shortage, so long as an employer has a reasonable basis for attributing a loss to that employee, the employer may require the employee to reimburse the employer or face disciplinary action.