Legal Question in Business Law in Maryland
New hire salary witholding and payback upon resignation
I worked for a co. for 18yrs before leaving in end of January 2005. 14yrs into my employement the employeer decided to withold 1 pay period from everyones salary. Any subsequent employees would also have 1 pay period witheld. I objected but was told I would be recieving that money upon termination and it would be at whatever my current salary was. Well myself and 2 other employees upon leaving were told we would only get what was witheld 5yrs ago and one employee was told he was lucky to get that. It isn't alot of money but the principle. I just want to know if this is legal or not. If not I guess I will have to decide if it is worth going to small claims court. This guy has always nickel and dimed his employees and customers.
1 Answer from Attorneys
Re: New hire salary witholding and payback upon resignation
The law requires that each individual must be paid for their work promptly and that most employees cannot be paid less frequently than twice a month. If the employer fails to pay the employee in a timely manner, the employer can be ordered to pay three times the withheld wages. There are exceptions for executives and other similarly situated employees.
However, it sounds as though you have waived that because you did not pursue it immediately. If I read your question correctly, the wages were due over three years ago. If that is the case and you agreed to accept the wages at the end of your employment at the rate of pay that you were making at that time, than you would only be able to collect the difference between the amount that you were supposed to receive and the amount that you actually received (which would be $0 if you haven't yet cashed the check). As long as you file the complaint with the Court within three years of the date that you received the check at the 14 year pay rate.
Also keep in mind that if you were paid by check and cashed it, the Court may find that you accepted the lesser amount in lieu of the amount actually due. This is called an accord and satisfaction in legal terms and one can often unknowingly waive otherwise good claims by cashing a check that is lower than the amount actually due.
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