Can my employer withhold my last paycheck if I owe a company loan?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can my employer withhold my last paycheck if I owe a company loan?

My boss gave me a loan through a company check and company credit card. my last day working there was today. I was given my last paycheck and told my commission based checks would be held onto by the business to pay back the loan I received. Is it legal for them to hold earned money to pay back a loan such as this?

Asked on December 18, 2015 under Employment Labor Law, California

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

No, they could only withhold the money IF you had signed an agreement allowing them to debit your last check(s) for any unpaid loans. If they won't pay you, you could sue them for the money; but that may not help in practice, since they could countersue you in the same action for the money you owe them, and a court would net out what they owe you vs. what you owe them to determine who is paid how much. So even though they were wrong in how they did this--since the proper way to get the money would have been to sue you--once you bring them into court, they can bring up what you owe them and you won't be able to collect your paycheck without also paying the loan.


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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption