If I took a company loan with conditions to pay it back from my paycheck in installments, can the companykeep my final paycheck?
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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 12 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.
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