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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Business Law
Satisfied Customers: 110439
Experience:  All corporate law, including non-profits and charitable fraternal organizations.
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I am a contractor with local government agency. I had

Resolved Question:

I am a contractor with local government agency. I had two employees who defrauded the company by indicating that they had completed work they did not complete. The county is witholding my payment until they can determine the extent of the fraudulent activity. Can I hold their final check until the audit is complete? Can I sue them civily for the loss of revenue? Can I file criminal charges against them?
Submitted: 8 years ago.
Category: Business Law
Expert:  Law Educator, Esq. replied 8 years ago.
Generally, you cannot withold wages from employees to offset other damages they owe you for. You would have to pay them, then sue them for the damages for failure to complete the work. You could speak to the local DA regarding their fraudulent conduct, as commiting fraud on government contracts is illegal. Unfortunately, as the contractor, you are ultimately responsible for properly supervising your employees and their work, so the DA may not touch the case. Even if the DA does not touch it, you could still have a civil suit against the employees for any damages you must pay.

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