Handling an Employee's Final Paycheck
Some of the most sought after advice from the NFIB Small Business Legal Center concerns handling the final paycheck for an employee who fails to return company equipment or damages company property
Beth Milito warns small business owners to act carefully before withholding part of an employee's paycheck to recover costs for things like damaged equipment, uniforms, cash drawer shortages or negligence.
"Some states prohibit deductions for these sorts of things, while others allow it if the employee has consented in writing," Milto says.
Milito urges business owners to always check with their payroll provider or state labor department for laws and regulations governing employee withholding.
More legal tips for small business owners are available at NFIB.com/legal. NFIB’s Small Business Legal Ease is a web video series with Beth Milito of the NFIB Small Business Legal Center discussing laws and regulations affecting the right of small business owners to own, operate and grow their businesses.