logo_fullcolour

Can an employee's final pay be withheld pending satisfaction of certain obligations?

An employee's final pay cannot be "withheld" in its entirety for any reason. It is due and payable on the next occurring regular pay day following the employee's last day of employment. However, employers are permitted to make certain deductions from an employee's pay as long as they are: (i) for the benefit and convenience of the employee; (ii) authorized by the employee in writing in advance; (iii) for reasons such as repayment of debts owed to the employer, debts owed to third parties (through the process of garnishment), debts owed to the government (such as for back taxes or federally subsidized student loans), child support, alimony, union dues, charitable contributions, and insurance premiums (a complete list of authorized deductions can be found at 34 Pa. Code §9.1); and (iv) the net amount paid does not fall below the applicable minimum wage. It is unclear whether withholdings for repayment of debts to an employer are subject to the minimum wage requirement.