Is it legal if my ex-employer is witholding my last paycheck until I sign a non-compete agreement?
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Is it legal if my ex-employer is witholding my last paycheck until I sign a non-compete agreement?
I can’t get paid unless I come in and sign it.
Asked on March 14, 2019 under Employment Labor Law, Iowa
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Wages may not be withheld or deducted other than for legally mandated reasons (i.e. taxes, garmishments, child support, etc.). As for the non-compete agreement, you don't have to sign it. If your former employer wants you to sign then it must make it worth your while such as offering you severance in exchange. If your pay is withheld, then you can sue in small claims court or file a wage complaint with your state's depatment of labor. You can also consult directly with an employment law attorney in your area.
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