Withholding ex-employee paycheck

battafaranod

There is a policy in our Employee Handbook that states we "may withhold from the employee's check or final paycheck the cost of any items that are not returned when required." Which laws support this? We may have an ex-employee that may fight this.

TLC Shelly

Welcome to the Forum, Battafaranod!

My understanding is that the law requires specific authorization from the employee to withhold from his/her check. A blanket authorization will not do, nor will a policy or statement in the employee handbook. When we check materials out to an employee, they have to sign a form stating what item(s) the employee is taking, the cost of the item(s) and authorizing us to deduct that amount from their paycheck if not returned by a specified date or the end of their employment.

marc

Shelly is correct. The only addition is that the check cannot go below minimum wage after the deduction.

VS

In addition, some State laws require the final paycheck to be distributed LDW (CA) or by the next pay period (most States). You cannot hold a check "hostage".