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Last paycheck for telecommuting employee

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rachels165

Guest
I, and the company I work for, am located in New York City. My boss recently terminated an employee who had been working from his home in California. We owe him a final paycheck, but the former employee still has company-owned equipment (a laptop computer, I believe) which he has not returned. Can we withhold his final paycheck pending the return of the company's property? If not, what can we do to get the equipment back?
 


Beth3

Senior Member
Can we withhold his final paycheck pending the return of the company's property? Nope. You cannot hold an employee's paycheck hostage for any reason.

If not, what can we do to get the equipment back? If the ex-employee refuses to return company property, then your recourse is to file a civil suit against him. Having your corporate counsel send a letter threatening to do so if the property is not returned by [date] may be all it takes for the laptop to be returned.
 

cbg

I'm a Northern Girl
Under the laws of NY state, you must release his final paycheck no later than the next regular payday. You cannot hold it pending return of the equipment, and NY law will not permit you to take a deduction covering the cost of the equipment from the final check.

However, you may take whatever other action you feel may get your equipment back, including having an attorney send him a nasty letter, suing him in small claims court, etc.
 
D

dan148

Guest
cbg said:
Under the laws of NY state, you must release his final paycheck no later than the next regular payday. You cannot hold it pending return of the equipment, and NY law will not permit you to take a deduction covering the cost of the equipment from the final check.

However, you may take whatever other action you feel may get your equipment back, including having an attorney send him a nasty letter, suing him in small claims court, etc.
Welcome back CBG,

In response to this reply, In Florida it is also illegal to withhold a paycheck for any reason as you stated above, however, there is a loophole (to my understanding). My management handbook (and other handbooks that I have read)which I had to sign upon employment states; We (the company) reserve the right to hold a portion or all of any wages due to the employee upon term. if:
A) Terminated for stealing (money)
B) Doesn't return company issued uniforms
C) Doesn't return company equipment
So on and so forth......

I remember a long time ago I checked with my attorney when I owned the company and he said that; "As long as you signed that booklet PRIOR to being hired, than the company can do that, however, that disclaimer MUST be PRIOR to being hired, Not during employment, Not before your fired, but PRIOR to being HIRED.

Question(s)

1) Can they???
2) If so, did the employee of the OP sign the employee handbook, and was that disclaimer in there?
3) I guess the BIG question here is (pending the answers to 1 & 2), Is there a loophole in NY'e DOL as there is Florida's?

Thanks, CBG or others
 

cbg

I'm a Northern Girl
There's a couple of different issues here, Dan.

First of all, NY law REQUIRES that the final paycheck be released no later than the next regular payday. FL law does not require the final check to be released at any particular time.

NY law specifically prohibits the employer from taking deductions for losses, shortages or breakages, and specifically prohibits taking any deductions not required by law unless they are authorized IN WRITING by the employee. FL law does not have any such prohibition.

I disagree that it's as cut-and-dried an issue as your lawyer seemed to be saying. Unless there's an obscure FL law out there that I've never encountered (and I've had employees in FL under two different employers) I don't see any reason why an employer could not institute such a policy to include existing employees. As long as the employee signed it knowingly I don't see any reason why the state would refuse to uphold it because it was signed after hire instead of before.

However, that doesn't mean that I agree with such a policy. Even in the absence of the prohibitions above I would think the better course would be to pay in full and use other means as mentioned to reclaim the equipment.
 

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