California State Employment Law

Virginia Jackson

I have an employee who worked in California and is no longer employed with us. He has company property that is valued at approximatley $2000 that he needs to return to us. Before his departure, he submitted company expenses to be reimbursed to him.

Can we hold off reimbursing him until he returns the company property? Thanks.

jimlegal

I would send the former employee a letter certified mail return receipt requested giving the former employee ten (10) days to return the company property. In the letter I would quote the penal code concering theft and make it clear that the company prosecutes all theft matters, as outlined in the company policy. As for the "expenses" and not "wages", I would advise the former employee that the check for "expenses" is at the company for the former employee to pick up. Or at a minimum I would seek the former employees input on where the former employee would like for us to send the check. I can see how tempting it may sound to hold the expense check in exchange for the property. However I believe by doing so would only cause you more problems. You need to approach this situation with "clean hands", in the event it leads to some type of legal action later. Just my two cents...

Don D

We take the risk of additional problems and withhold expense checks until we are satisfied that property has been returned or either that our agent has picked up the automobile with the goods in the trunk. Our letter to the ee indicates that 'Any outstanding expense reports must be forwarded to ----- within ten days. Any expense claim presented by you will be audited against such things as return of company advance and issued equipment. A complete audit may take some time. Please indicate by email to --------- your intentions regarding this matter. We are sure that you will want to return our equipment on a timely basis in the event we have are called on to provide employment verifications in the future.' Then we include another list of all property issued to the ee. Call us risktakers. Now we'll read the posts from the legal side.

System

Virginia, I worked in CA a while back and I have (at home) some books on CA law from the Chamber of Commerce. I am almost sure they address that issue. I will check tonight and get back to you.

scantey

Just as an FYI it is illegal to withhold money owed to the employee in California for almost any reason
California Labor Code states:

Termination and Layoff
If you terminate an employee, or lay him/her off with no specific return date within the normal pay period, all wages and accrued vacation earned but unpaid are due and payable immediately.1 It is not acceptable to ask or require an employee to wait until the next regular payday for his/her final wages.

You may not withhold a final paycheck. For example, it is illegal to withhold a final paycheck to induce the former employee to:

Return tools, uniforms, pagers, laptop computers, keys, or any other items belonging to the employer;

Pay back money that may be owed to the employer; and

Turn in expense reimbursement forms.

Don D

......These foreign countries and their laws drive me up the wall.x:-)