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Employer refused to pay last paycheck due to unpaid loan Rhode Island

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  • Employer refused to pay last paycheck due to unpaid loan Rhode Island

    I was wondering, does anybody know if an employer can fire someone and not pay them their last paycheck if the employee was still paying off a company loan? The agreement we had was to pay $250/wk until it was paid off, which I still plan on paying back at the agreed upon amount. However, can they change that agreement and take my entire check to pay the loan off? If someone has some insight I would really appreciate it.

  • #2
    No, you must be paid at least minimum wage and your paycheck cannot be held hostage. In the repayment agreement/deduction authorization you signed (I certainly hope there was one), what was included about what happened if you terminated your employment with an outstanding balance?
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      i didn't sign an agreement it was verbal

      The agreement was only verbal. Does that mean I'm screwed out of the last monies owed?

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      • #4
        If you only authorized a deduction of $250 per paycheck, then that's all they can take. You can file a claim for unpaid wages with the state Dept. of Labor.
        http://www.dlt.ri.gov/ls/pdfs/LScomplaintform.pdf

        Maybe you can suggest a promissory note arrangement so that, if you default, the employer has some legal recourse. That might give him enough of a comfort level to release your check without you having to file a claim.
        Last edited by Pattymd; 11-02-2006, 09:40 AM.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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