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Witholding final paycheck for relocation

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kwalla

Member
What is the name of your state (only U.S. law)? GA

Is it legal for a company to withhold your final paycheck on the basis that it would be paid towards relocation expenses? I am an exempt employee if that is helpful.
 


sandyclaus

Senior Member
What is the name of your state (only U.S. law)? GA

Is it legal for a company to withhold your final paycheck on the basis that it would be paid towards relocation expenses? I am an exempt employee if that is helpful.
Was the company supposed to pay relocation costs? Did your agreement with the company require you to repay those expenses in the event that your employment was terminated within a specific time after your employment began?

To my knowledge, the company is allowed to deduct those amounts from your final paycheck if company policy and state/federal law allow said deductions.
 

cbg

I'm a Northern Girl
Not following you. How do relocation expenses come into it?

(Exempt vs. non-exempt does not matter in this case.)

It is almost certainly not legal (though I would like to hear more about the relocation expenses) but the problem is that GA is one state that has no laws on the release of final paychecks and does not accept wage claims. You would be referred to the US DOL, which only will fight for the minimum owed by law.
 

swalsh411

Senior Member
Did you agree in writing to this deduction if you left before a certain time? If so, it's legal as long as you are paid at least the minimum wage. This is a common practice for relo and education assistance.
 

kwalla

Member
Not following you. How do relocation expenses come into it?

(Exempt vs. non-exempt does not matter in this case.)

It is almost certainly not legal (though I would like to hear more about the relocation expenses) but the problem is that GA is one state that has no laws on the release of final paychecks and does not accept wage claims. You would be referred to the US DOL, which only will fight for the minimum owed by law.
Thank you CBG. It was a standard relo contract that required repayment if employment was terminated before 2 years. In this instance, there were significant personal safety issues that went continually unaddressed (which I have in writing) that required me to resign. In my previous experience (mostly with NY and CA employment law), a company cannot withhold final pay. However, it makes perfect sense to me that Georgia does not have that law on the books, they seem to have very few overall.

Thank you both for your prompt replies.
 

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