Is it legal to deduct for accounts receivable from an employee’s last paycheck?
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Is it legal to deduct for accounts receivable from an employee’s last paycheck?
I was recently terminated from a job of 4 years which I was manager. I was responsible for accounts receivable. Upon receiving my last paycheck, I realized that they had deducted over $700 in outstanding accounts receivable from my paycheck. Is this legal?
Asked on September 27, 2017 under Employment Labor Law, Alabama
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
Unless you specifically agreed to such a deduction in writng, then it is illegal. An employee must be paid for all time worked. That having been said, your employer may have the right to charge you for any oustanding Iccounts receivable (depending on specific state law). if so, then you can either agree to pay any such amounts or your employer could even sue in small claims court for reimbursement. At this point you may want to put a call into a local attorney to be certain of your rights.
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