Repayment of Negative Vacation Balance

[KLBarnett]

What is the name of your state? Maryland

A colleague of mine recently quit his job (MD Employer) and moved out of state. His company asked him to become an hourly consultant and telecommute until they can find a replacement. When he left the company, he apparently had a negative vacation balance, which the company failed to withhold from his final check. Upon receiving his first invoice, the employer responded saying that they failed to withhold his vacation and would be withholding it from his invoice instead. Can they legally do this? Do they even have the recourse to request repayment now that their employment relationship has been terminated?

 

[cbg]

Of course they can request repayment after the employment is terminated. If he'd been underpaid he'd expect them to make good, wouldn't he? Why do so many people believe it's a one-way street?

As to whether or not they can deduct the money from an invoice, that's a question that might better be answered by an attorney in your state, unless Patty knows.

 

[pattytx]

I can't cite any law here, but I'm thinking that since the employment relationship has ended, any payment terms would have to be delineated in the contract.

BTW, is your colleague doing the same thing you were doing before, just as an independent contractor? If so, he/she should be classified as an employee, not an IC. Having taxes withheld, WC, etc. The IRS does not look kindly upon employers terminating an employee, then hiring them back with no taxes being withheld. A W-2 and a 1099-MISC in the same year from the same company puts up a red flag for an IRS audit.