Is it legal if my girlfriend’s boss took her final paycheck without permission as partial payment for money she owed the company for a payday loan she got?

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Is it legal if my girlfriend’s boss took her final paycheck without permission as partial payment for money she owed the company for a payday loan she got?

The company she worked for was a payday loan company and her loan from the company was passed due when she quit. She went in as a customer to get the loan. They did not loan her money as an employee. Can they just take her check like that without permission?

Asked on July 12, 2012 under Employment Labor Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

No, they may not due this. Even if the loan had been from her employer as her employer (rather than made to her as a customer), they still could not take any portion of her pay without her permission. She could sue to recover the withheld pay; of course, if she does, she should assume there will be counterclaim for any amounts she is late or in default on under the loan; therefore, depending on the circumstances, it may not actually help her to bring a legal action.


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