Sunday, August 9, 2009

Can a company withdraw a paycheck from your account for time you worked there?

My husband received a paycheck via direct deposit on Jan 31 and quit the next day Feb 1. Now today the company withdrew the paycheck from his account. That paycheck was for the time he worked from Jan15-Jan31. He has a work laptop that is on its way back to the company and they have the shipping number to track it. The company is in Colorado and we're in Virginia. Isn't there some kinda law that protects against this? I honestly think that there is no way they can legally get away with this! We're very upset and have no idea about what we can do about it.
Can a company withdraw a paycheck from your account for time you worked there?
See a lawyer, they have to pay him.
Reply:Call your bank and ask them why they did this and if there was some court ordered release of the money
Reply:If the check date was Feb. 1 and the deposit date was Jan 31, sure, they can pull it back.





We withhold final paychecks pending return of company equipment too. It's perfectly legal.
Reply:That is a very unusual case. I don't think it is legal for someone to withdraw money from your account, but the company can put a hold or stop payment on the check, through its' bank. Call the company and ask for an explanation. It may be that the company is holding the pay until the laptop is actually returned and verified to be undamaged.
Reply:Agreed. Get a lawyer.
Reply:If he r'cvd a check on Jan 31 ( a Wednesday, that is really weird for 1) for his work from Jan 15, 2007 thru Jan. 31, 2007 ( another wierd thing the last day of the pay period and he got his check the same day) i think you had better check what his actual pay period was and what that check was actually for.


I'd also guess until that laptop is recieved in good condition, your husband won't r'cve his last check.


I handle payroll and the time frame your describing seems a little strange to me for pay period ending and deposit turn around time.
Reply:I dont know about the laws in your state but in CA an employer cannot withold a paycheck for any reason. Even though the company is in Colorado did your husband work for them in Virginia? If so Virginia's laws apply not Co's.
Reply:I would assume that the company only has permission to deposit funds in the account not withdraw and would take this up with the bank. Make sure you get a receipt for the laptop and that it is in working order. Try calling the labour board in the community and see if they can help especially if he is entitled to this pay and perhaps holiday pay depending on the rules for your state. Be firm with the bank don't just agree with what they say.
Reply:It depends. When you sign up for direct deposit for your paycheck, you agree that the company has the right to withdraw from your account for any reason.





Typically payroll cannot be garnished to pay for missing items or damaged equipment. Ask why the amount was withdrawn and when you can expect to receive the last paycheck.





If you get no resolution in a reasonable amount of time, contact the Colorado labor board immediately.

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