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Holdin pay for company property?
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Holdin pay for company property?
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
Does anyone know if Pennsylvania allows an employer to hold a paycheck for the return of company property?
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Holdin pay for company property?
posted at 6/14/1999 9:55 PM EDT
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Posts: 58
First: 6/14/1999
Last: 2/20/2006
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Does anyone know if Pennsylvania allows an employer to hold a paycheck for the return of company property?
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Holdin pay for company property?
posted at 6/15/1999 5:40 PM EDT
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Posts: 38
First: 6/9/1999
Last: 10/26/2004
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EB&G Responds -- Wherein We Offer the "Tip of the Day"
Posted by MMiklave on 6/16/99 4:32 AM GMT
Well, this is a pretty common issue, from a couple of different points of view.
First, under many state wage and hour laws, an employer may be obligated to pay employees for any training which the employer requires them to attend. This clearly means that the employer must pay the employee to attend required training (under almost all state laws and the FLSA) and that the employer sometimes has to pay the costs for the training course.
Second, if the training is not "required," some employers seek to require reimbursement of the costs of training if the employee terminates within a certain period of time. How does one go about collecting this debt? Under many state wage and hour laws an employer may NOT withhold money from an employee's paycheck without written authorization and in some state's an employer may not withhold pay from an employee's paycheck even WITH an authorization. Thus, without the authorization, an employer may be required to file a lawsuit against the employee to collect. Once an employer has a favorable judgment, then the employer has got to try to collect the judgment!
Third, some of those in my field are strong advocates of alternative dispute resolution procedures (such as binding arbitration) and urge that employers routinely enter into ADR agreements. This is the source of great controversy today, so employers must be careful in how they design an ADR program. However, it can be done and such programs can be successful.
So what does this mean. Well, some employers might find it worth their while to enter into employment agreements with their employees. The agreement would specify the term of employment and the circumstances under which the employee or employer could terminate the employment relationship. There is no reason why such agreements could not say either side has the right to terminate the employment relationship at any time, for any reason, and the employment relationship is "at will." The agreement could include provisions requiring severance if the discharge is without cause (that is a benefit), provide that the employee must return all property, provide that the employee reimburse for training and authorize the employer to deduct the costs of training from the severance or final paycheck (check state law to make sure you can do this), and provide that all disputes will be resolved by way of binding arbitration.
How does that sound? Let me hear from you!
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Holdin pay for company property?
posted at 6/15/1999 5:43 PM EDT
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Posts: 38
First: 6/9/1999
Last: 10/26/2004
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EB&G Responds
Posted by MMiklave on 6/16/99 4:34 AM GMT
While I realize that this Worforce Online is still under construction, do not forget that you can search for legal sources on the web by visiting EB&G's Virtual Law Office (www.ebglaw.com). Go to the Legal Links section on the home page and search to your heart's content.
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Holdin pay for company property?
posted at 6/15/1999 6:12 PM EDT
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Posts: 58
First: 6/14/1999
Last: 2/20/2006
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We are a manufacturing facility. The majority of our factory staff is Mexican (also some white and some african american). We have an extremely high turnover rate and in the past have lost ID badges and safety glasses. In order to retrieve the company's property, employees have been denied paychecks until these items were returned.
I used to work in Delaware and I know Delaware state law says an employer cannot hold a paycheck for the return of company property. I was wondering if Pennsylvania law says something similar!!! Any help or suggestions would be great!!!
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Holdin pay for company property?
posted at 6/21/1999 6:31 PM EDT
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Posts: 399
First: 6/21/1999
Last: 9/14/2005
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I don't know the exact answer to your question. However, Pennsylvania requires that final pay be issued on the next regular pay. It mandates that all accrued but unused vacation time be paid out. I suspect that they would not allow pay to be held back. Few states do! Check with the state DOL for final confirmation.
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