Can an employer withold a paycheck from a previous month?

[Guest brastang]

I recently gave a car dealer my 2 wek notice, but left 4 days early. They are now holding 2 paychecks from the previous month pay, one a commission check. The manager says he has to wait until all paperwork is cleared. I will owe them nothing because I have no outstanding debts with them. He said if he can't coolect customers bills, I will have to pay those bills, because it is my responsibilty as a service consultant to make sure bills are paid. I am still due a paycheck of commission for 9 days of work from them. Is this legal? Can he withhold a paycheck? He has had it about 8 days now. I am not sure what my rights are. All help is much appreciated. I don't even know where to look this information up at.

[Guest CLKeown]

One important piece of information is the state you are located in. Each state has different final pay requirements ranging from payment is due immediately upon termination to payment is due on the next regular pay date.

You said you gave a two week notice and left 4 days early. Was leaving early your idea or your former employer's?

Do you have an employment agreement? Or an employee policy manual that would detail the policy of payment of commission to terminating employees?

How much of the outstanding checks is commission and how much if any is actual salary?

With out this information it is virtually impossible to answer your question!

Carole

[Guest brastang]

It was my idea to leave early. They are holding one check that is full commission one that is a smller check that is salary. The handbook, which I never signed as reading and understanding states: " The final pay check of an employee who is either terminated or resigns will be subject to all outstanding debt to said dealer. This includes the return of alluniforms and demo cars, and outstanding purchases. Any remaining balance due will be paid to the company immediately after employment ceases". I have no uniforms, demo or outstanding purchases. There are not holding my last check but last months check, I am set to get a check on the 15th of next month for about 10 days of work. also in the handbook it states: " If proper notice is not given before resignation, the employee will also forfeit any accrued bonuses and or commissions." I don't know where to go to find out the laws of maryland. Would it be a good idea to seak a lawyer, as this will cost much more than the checks I am fighting for? Please help with any information

[Guest Jeff Kropp]

I would suggest that you go to the nearest state government office that handles wage claims. You could probably call but an actual sitdown usually produces more results (if this is possible).

You probably want to bring any paperwork you have, including your employee handbooks. If you are persistent and your claim is valid, the government may do the work for you. Otherwise, your alternative is to hire an attorney, which would be worth it if the alternative is to receive nothing (the attorney would probably work on 1/3 contingency). Good luck.

[Guest CLKeown]

Okay, there are several points to address here.

#1 - To the best of my knowledge in no state may an employer hold actual salary upon the termination of an employee.

#2 - In the state of Maryland, you must pay a departing employee on or by the next regular paydate.

For further information on points one and two - visit or contact your local Maryland Department of Labor office.

#3 - You wrote, "The handbook, which I never signed as reading and understanding states: " The final pay check of an employee who is either terminated or resigns will be subject to all outstanding debt to said dealer. This includes the return of alluniforms and demo cars, and outstanding purchases. Any remaining balance due will be paid to the company immediately after employment ceases"."

Generally speaking the form that one signs when receiving a policy handbook is an acknowledgement of receipt only. Whether you read it and understand it is really of no consequence. That this policy is in practice and in writing is the salient point here.

If I understand you correctly you are stating that you for example terminated mid-August. The checks currently being held are for July and you do have salary and commission owed to you for August. Is that a reasonable understanding of your situation?

If that is correct, it would appear that your employer owes you the salary and commission for July and should legally be able to hold any August payments due to you. However, if you do not have any salary or commission amounts due to you for August, your employer may be holding the July payments in lieu of August.

#4 - You will have to communicate with your former employer to see if not working your full notice period is construed as not giving proper notice. Unfortunately, they may be able to consider it as such.

# 5 - You wrote in your first post, "The manager says he has to wait until all paperwork is cleared. I will owe them nothing because I have no outstanding debts with them. He said if he can't coolect customers bills, I will have to pay those bills, because it is my responsibilty as a service consultant to make sure bills are paid. "

Is collection part of your job responsibility as put forth in your job description?

Has your employer actually refused to pay you, or are they truly waiting for the accounting procedure?

Is this standard operating procedure and company policy for any employee who terminates employment?

Before speaking to an attorney - which can be very costly - you should speak to the Department of Labor. You should have some of this information at hand before you speak to the Labor Department.

Hope this helps,

Carole