Can employer keep whole last check to apply to personal loan and keep personal belongings
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Can employer keep whole last check to apply to personal loan and keep personal belongings
My employer gave me a personal loan to be deducted biweekly
from check. They fired me and kept my entire last check and all
personal belongings until balance is paid. Is this legal?
Asked on August 20, 2018 under Employment Labor Law, Maryland
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
No, it is not legal unless you agreed to let them do this. The law is clear that an employee's paycheck, including final check, can only be withheld with employee consent (agreement) or a court order (like for wage garnishment); this is so even if the employee owes the employer money. The law is also clear that someone cannot take or hold onto another person's belongings if the first person owes them money, unless that person had actually given them those items as security for the debt.
You can sue them for the paycheck and your belongings. Bear in mind that if you do owe them money (such as an unpaid loan balance), they could countersue you for that amount; if you owe them as much or more than they owe you, you will not come out ahead.
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