How long can you hold a paycheck from your former employee after she quits w/o advanced notice, failed showup?

Question

This employee from the first day had received a fine line clause in the contract / document stated if she quits without one week notice, the last payroll check will be held for one month. Although there was no bear of her initial on that document to confirm she read and understood, she signed the W2/ W4 afterward, would that enough to held her accountable for fully understanding the paycheck will be held? Some stated that Dept of Labor required a paycheck to issue within 72 hrs after the employee quit? Is that true, I could not find that info at anywhere?

Answer 1

If an employee quits, their final paycheck has to be issued on the next pay day. If they are fired, it has to be issued within 72 hours. Anything you put in a contract does not over ride these laws. If you fail to abide by them and your ex-employee files a complaint, you are subject to a fine and additional payments to the ex-employee.

If you have paid previous terminating employees faster than the law requires, this is known as setting company policy by precedent. Company policy must be administered equally to everyone.

In the case of commissions, established company commission schedules can be followed. So if the policy is to hold commissions for 30 days in the event of returns, you can also do this hen an employee leaves.

Answer 2

As a mobile notary and having dealt with many legal documents,I would say don't hold her paycheck. If she didn't initial the page that says that her paycheck could be held than all she has to do is claim that she never saw it. It would be in your best interest to make sure that your employees place their initials next to each clause in their contract. Also, you may want to look up the laws in your state. Just because something is included in your contract does not mean that it is legally binding according to your local laws. HTH

Answer 3

There is not a law or rule, that city county laws have that employers can hold a private company's pay from a employee that quit or was terminated.
They are liable for not paying a person compensation for services or work done. Processing time is processing time, that will hold up in county court system even federal.
The contract/document not employment document means the person was never a regular employee. Contract employees handled by temporary agencies or degreed in human resources can file for damages in cases of termination errors. Fake reasons as no work, bullies, being assigned other work in addition to,..

Answer 4

In CA, it is 72 hours if she leaves with no notice, upon leaving if she gives at least 72 hours. Other states vary, but very few if any allow more than one week or the next regular payroll, whichever is earlier. The company shouldn't be going against state laws even if she did sign it into a contract. It is unenforceable to the company.

Answer 5

The laws on this vary from state to state.
I do need to ask however, what is the gain in holding the last check. Sure she left withoutnotice, and probably left you in a bit of a bind, but really, what are you gaining.
In these situations, I find it much easier to close the file, and move on.
If you are doing this to simply inconvenience her, look at it from a third party perspective... You need to maintain the integrity of your business. She merely needs another job.

Answer 6

http://www.dol.gov/dol/topic/wages/lastpaycheck.htm

What my understanding of this is that you may have to pay the employee at the normal time everybody else got paid for work done in the last pay period that the employee worked. there weren't too specific but make sure you check with your state law as it may be different

Answer 7

I would not hold a paycheck....
regardless.
You could find yourself in court.
You have no legal grounds.

Answer 8

the next pay period