Virginia - We had an employee (on board for about 35 days) who owed the business (a small service business) about $1000 (different advances given by the management, on good faith and documented properly). In the 30 days of employment, she had 3 written letters of reprimand (based on improper office procedures and customer interaction)from the Office Manager which were acknowledged by the employee. Yesterday, it was found that she pocketed about $200 from the front desk and she was fired today after a meeting with the Office Manager and a Senior Exec, and she signed on the letter of termination - did not accept liability, but did not want a police investigation. We also found out that there is another $250-300 unaccountable in cash collection during the last week (which were not reconciled until today). Can we hold back the last paycheck due to her (about $440 before taxes)? We have no way (do not want to waste time and money on legal fees) to collect on the other monies owed - the consolation is that atleast some collection was made if we can hold her final pay back.

No, you cannot hold her paycheck regardless. File a report of theft with the police for the amount she (apparently) took. This is a civil matter and does not have any affect on your obligation to pay her wages.