Employee Quitting Owes $$

[font size="1" color="#FF0000"]LAST EDITED ON 04-27-04 AT 07:15AM (CST)[/font][br][br]I have an employee that is coming in today and will be quitting. He called his foreman and informed him of this. Against my advice and company policy the owner recently loaned him some money. ( :-) No I am not gloating.....as the owner he gets to occassionally overrule policy.... he wants to do it on something else, and I think this will help me with that battle!)

In giving him the loan, he signed a promissory note that stated: "If default is made, or employment is terminated prior to the balance being paid back, the undersigned agrees that XYZ Company can withhold monies due from the final paycheck regardless of amount owed."

With this clause, do I have to still pay the minimum wage? Or can I withhold the entire amount? Or to do that do I need to have him sign agreeing to the withholding of the entire amount.
Whatever we do not collect now, will be a lost cause, just wondering how much I can get. I appreciate the input.

He just came in and quit. He also signed authorizing me to withhold the entire paycheck to go towards the debt he owes.

My $0.02 worth!
DJ The Balloonman


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