If I took a company loan with conditions to pay it back from my paycheck in installments, can the companykeep my final paycheck?
UPDATED: Jan 18, 2012
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I took a company loan with conditions to pay it back from my paycheck in installments, can the companykeep my final paycheck?
Asked on January 18, 2012 under Employment Labor Law, California
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
If you agreed to let the company take a certain amount out of your paychecks to repay a loan, the company may only take out the amount you agreed to--and that includes from your final check. The company may not withhold your final check in its entirety unless you agree to let them do this. What they can do is sue you for any remaining unpaid balance on the loan, if you should not repay it.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.