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Unauthorized Deductions from Final Pay - NJ

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quincy

Senior Member
Yes, Zigner is correct. The pay rate was reduced by approximately $30/hr, OT rate reduced by approximately $45/hour, which resulted in a $1700+ underpayment.
We don't actually know the exact rate my husband should have been paid. We do have the original offer letter, which was for an additional $28+ per hour (over what they paid on final pay check), but he also received a $5/hr raise a couple of months ago, which would bring us to $33/hr more than what they paid him in his final check, $49.50/hr OT more.
The raise was not put in writing, so we don't have documentation of it, and unfortunately since they have removed my husband's access to ADP he can't look at/print out old stubs to see what the correct current rate is. So the $30 more per hour, $45 more per OT hour is an approximation.

While there is not a direct line item 'deduction' on the final pay stub, there is a note referencing deductions for trainings, so I can only assume that this was why they reduced his rate (to cover the deductions).

You may recall that last Friday (June 3) we asked for the cost of each training, the signed authorization document, and either renewed access to ADP or a copy of all of my husband's pay stubs. On Monday we received only the cost breakdown, as an invoice.
I think if they also had a signed authorization they would have forwarded that, too.
Thank you for the additional information. I guess you now must wait to hear what happens with your NJ DOL complaint. Good luck.
 


GottaGo

Member
Update!
On April 4th we went to court and our case was heard by a referee.
Unfortunately for us, it turned out my husband had signed an agreement that if he did not complete a certain term of employment that he would then be responsible to pay for the classes; however, the amount the company charged him for these classes was some made up number.

The representative from my husband's former employer provided a detailed invoice to the court for the cost of the courses that was triple the amount of the invoice sent to my husband at the time of separation. Because of this, the referee agreed that the company had wrongfully withheld my husband's pay and ruled on behalf of the plaintiff (my husband).

The company was ordered to pay most of the money owed, plus 25% in damages.
(I say most because the rate the referee was using to calculate the lost wages was prior to the raise my husband received 3 months before separation.)

Today my husband received the payment in the mail, but the company deducted taxes from the court-ordered amount.

We did not receive a copy of the award letter, so I am not sure if they were supposed to take out the taxes or not.
I'd be surprised if they actually remit those taxes they took out.

I'll call the NJ DWL tomorrow to see if I can find out, but anyway, glad for this to be done and feeling just a little victorious!
 

LdiJ

Senior Member
Update!
On April 4th we went to court and our case was heard by a referee.
Unfortunately for us, it turned out my husband had signed an agreement that if he did not complete a certain term of employment that he would then be responsible to pay for the classes; however, the amount the company charged him for these classes was some made up number.

The representative from my husband's former employer provided a detailed invoice to the court for the cost of the courses that was triple the amount of the invoice sent to my husband at the time of separation. Because of this, the referee agreed that the company had wrongfully withheld my husband's pay and ruled on behalf of the plaintiff (my husband).

The company was ordered to pay most of the money owed, plus 25% in damages.
(I say most because the rate the referee was using to calculate the lost wages was prior to the raise my husband received 3 months before separation.)

Today my husband received the payment in the mail, but the company deducted taxes from the court-ordered amount.

We did not receive a copy of the award letter, so I am not sure if they were supposed to take out the taxes or not.
I'd be surprised if they actually remit those taxes they took out.

I'll call the NJ DWL tomorrow to see if I can find out, but anyway, glad for this to be done and feeling just a little victorious!
Legally, the employer was required to withhold taxes because the money due to your husband was unpaid wages/salary and therefore it is taxable income as wages/salary. They will be including the wages/salary in his W2 and would cause themselves serious grief if the did not remit the taxes to the appropriate taxing authorities
 

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