Can we hold an employee’s last check due to outstanding debts owed to the company?
No. A terminated employee must be given his/her final paycheck according to state law. Some states require final paychecks to be distributed by the next regularly scheduled pay period while others require the final paycheck to be given within 24 hours of the time of termination. State laws also vary on when a final paycheck must be given to a departing employee depending on whether the termination was voluntary or involuntary. You can see how important it is to become familiar with your state’s laws. This doesn’t mean an employer cannot make deductions from the employee’s final paycheck AS LONG AS any such deductions meet the guidelines of federal and state laws.


