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Can an employer hold your last check if you have a unpaid loan with the company?
Wiki User
∙ 10y ago
In most cases, the answer is yes. Standard business practice for a company that makes loans to employees is to have the employee sign a pay-back agreement. In the agreement, there usually is a section that specifies what happens when the employee leaves the company before the loan is paid. In most cases, the agreement stipulates that the employer can deduct the balance of the loan from the employee's final paycheck.
Wiki User
∙ 10y ago
It depends on the laws and regulations in your jurisdiction. In some cases, employers may legally withhold a final paycheck to recover outstanding debts owed to the company. However, in most jurisdictions, employers are required to pay the final paycheck in a timely manner regardless of any outstanding debts. It is best to consult with a local labor or employment lawyer to understand the specific laws in your area.
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