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wallstreetfighter
wallstreetfighter, Employment Lawyer
Category: Employment Law
Satisfied Customers: 17080
Experience:  14 years exp, General counsel for National Corp. firms, Hostos College instructor, Represented employees in discrimination lawsuits
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Is it legal for an employer to hold your current paycheck if

Resolved Question:

Is it legal for an employer to hold your current paycheck if you have not signed a paper stating, that if you are terminated from the company for whatever reason, that you can not go to work for a competing company for two years and then if you do you have to pay the first company 10% of your new paycheck?
Submitted: 4 years ago.
Category: Employment Law
Expert:  wallstreetfighter replied 4 years ago.

wallstreetesq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

wallstreetesq. :

It is not legal for the employer to hold your paycheck for that reason,

wallstreetesq. :

in fact if they coerced you into signing such an agreement, you can argue that

wallstreetesq. :

the contract is invalid due to their actions, and that you were forced into signing the agreement

wallstreetesq. :

under Ky. Rev. Stat. Ann. § 337.055, an employer must issue a final paycheck to a terminated employee on the next regularly scheduled pay date, or within fourteen days, whichever is later. Likewise, under Ky. Rev. Stat. Ann. § 337.055, an employee who quits his or her job is entitled to a final paycheck no later than the next regularly scheduled pay date or fourteen days, whichever is later.

wallstreetesq. :

There are no circumstances under which an employer can totally withhold a final paycheck under Kentucky law;

Customer:

what can be done about this?

wallstreetesq. :

You can file a complaint with the Kentucky labor board,

wallstreetesq. :

If you are being terminated or are leaving,

wallstreetesq. :

send a letter to the HR,

wallstreetesq. :

stating that you will bring legal action against them for violating Kentucky law when you were coerced into signing the non compete agreement

Customer:

You may have misunderstood,it wasnt the final paycheck,it is the regular weekly paycheck.

wallstreetesq. :

Even if it is a regular paycheck

wallstreetesq. :

the employer cannot withhold it without your permission, nor can the coerce you to sign the non compete,

wallstreetesq. :

Also, the clause that states you have to pay the first 10% of your wages to them is not justified,

wallstreetesq. :

unless you were trained by them, they coerced you and forced you to sign this agreement under duress, and you can challenge it,

Customer:

I am getting info for my stepson who is going thru this today. His chk was held from him til he'll signed this paper. The part where you said "if were trained by them",he was trained by them for speciality cleanup work. How can this company force other companies NOT to hire him and then take 10% out of his chk?

wallstreetesq. :

They can only claim the 10%,as a potential penalty for working for another company,

wallstreetesq. :

However, the fact they held his paycheck to force him to sign the agreement, is something that would be coercion, and he could fight the contract in whole.

wallstreetesq. :

An employer can put whatever they want on these contracts, however, it has to be enforced by a Court,

wallstreetesq. :

and a Court may not enforce it, due to the circumstances surrounding it.

Customer:

Let me understand this,they cannot legally withhold the paycheck but they can claim or charge you as reimburtment for training, the 10% from another future employer. Is this correct when it's put that way?

wallstreetesq. :

They can not withhold a paycheck, and force him to sign any agreement.

wallstreetesq. :

An employer is allowed to have in a valid contract a clause that states the employee has to pay back training fees to an employer, if they leave the job, but only if the employee agrees in writing, and the contract was not signed by coercion

wallstreetesq. :

If you have any further questions please do not hesitate to ask

wallstreetesq. :

He can submit a complaint to the Kentucky labor board for their actions,

Customer:

Just one,where can I get what you have said,in written form so my stepson can use it in his defense to protect himself and to make sure there are no more with held paychks? thank you for time. very helpful.

wallstreetesq. :

Once you accept our service, the entire conversation would be saved and you can use it anytime

wallstreetesq. :

You would be able to print it or copy and paste it

wallstreetfighter and other Employment Law Specialists are ready to help you