Recouping Signing Bonus from Final Wages

[carriesso]

What is the name of your state? Michigan

I have just been terminated from my company that I had been with for only a couple of months. I signed an agreement stating that I allow the company to withhold my signing bonus from my paycheck if I terminated for any reason within one year. My employer has withheld my final paycheck to recoup the signing bonus (the bonus exceeds the final wages by a $500.) Can the company do that under MI law?

 

[fairisfair]

Michigan law allows employers to deduct from wages under certain circumstances. I feel fairly confident that a signed authorization from you might well meet those circumstances.

I would direct my questions to the Michigan Dept. of Labor

http://www.michigan.gov/documents/Brochure_390_R_5_5_05_130750_7.pdf

 

[cbg]

However, my understanding is that under Federal law, you would have to receive at least minimum wage times hours worked. They could, since you signed the authorization, withhold the balance to recoup the signing bonus, but they can't keep the whole check.

 

[carriesso]

However, my understanding is that under Federal law, you would have to receive at least minimum wage times hours worked. They could, since you signed the authorization, withhold the balance to recoup the signing bonus, but they can't keep the whole check.

Since I am a salaried employee does it matter? By the way, my employer is in not a MI company, but is in Massachusetts. I am in field sales.

 

[pattytx]

It's where you are that controls and cbg may be correct that you must be left with at least minimum wage. However, this has always been a question open to interpretation in the payroll world, in that, if the employee voluntarily authorizes a deduction that ends up bringing the employee below minimum wage, is that allowable? I believe that yes, it is.

GROSS pay must be at least minimum wage. Deductions from NET pay can generally be made to the extent that the check is completed consumed by the deduction if the employee authorized said deduction. Did you agree to have the bonus deducted from your final check and, if so, was there any clause in the agreement that expressly either allowed or prohibited the deduction to the extent of zero net pay?