Final Paycheck Withheld?

Under what circumstances can a final paycheck be held and not paid to the employee?

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Final Paycheck Must Be Delivered
by: Best Business Payroll

Under most circumstances, a final paycheck may NOT be withheld from an employee. The only exception would be if the employee owes the company money; in that case it may be subtracted from the amount of the final check.

Some employers may attempt to hold a paycheck until the employee has returned any company property (such as a laptop). The law would not be on their side, however, and such an attempt would not stand up in court.

In the case of a salesperson who receives a recoverable "draw" against future commissions, once the employee is no longer employed by the company, money cannot be collected. Once it is paid out, they may not ask for it back.

If your company is withholding your paycheck and does not provide a reasonable explanation (money owed), you should consider bringing your situation to the Department of Labor.

Best of luck.

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