An employer cannot hold a final pay check for non-return of company equipment, according to the Fair Labor Standards Act (FLSA). Some states allow employers to deduct such costs from the final pay check, while others prohibit these deductions entirely. It is illegal for an employer to withhold pay for any time an employee has worked, including overtime.Continue Reading
According to the United States Department of Labor, the Fair Labor Standards Act (FLSA), is a federal law that specifies employer responsibilities. Under the FLSA, wages are due on the regularly scheduled date set by the employer for the pay period, as long as the employee works during the relevant pay period.
The FLSA also sets the minimum standards for employment within the U.S. For example, the FLSA prohibits withholding pay to discipline an employee for poor performance explains U.S. News & World Report. Some states have additional employment laws that add to the FLSA, such as setting a higher minimum wage.Learn more about HR
Under the Fair Labor Standards Act, employers can recoup overpaid wages by adjusting the employee's future paychecks without employee authorization, even if the adjustment results in a paycheck less than the minimum wage requirement, according to Lexology. However, laws regarding recoupment of wage overpayment vary from state to state.Full Answer >
Federal laws governing employee terminations cover topics such as health care and unemployment benefits, discrimination and the employee's final paycheck, according to the U.S. Department of Labor. Other areas covered include veterans' reemployment rights, severance pay, layoffs and plant closures.Full Answer >
The U.S. Department of Labor reports that employers are not required by federal law to give a former employee a final paycheck immediately, except where stipulated by state law. However, employers cannot withhold an employee's final paycheck beyond the normal pay period covering the last time the employee worked without risking legal action on the employee's part to recover the wages due.Full Answer >
Legally, an employer can't withhold an employee's paycheck, according to Alison Green in a U.S. News & World Report article. Regardless of the employee's performance on the job or even if the employee made a very costly error that effected the business's operations, the employee must be paid.Full Answer >