Legal Question in Credit and Debt Law in New York
Employer Debt Collection
I have been an employee of a temporary employement agency since July of this year. Two years ago, I had registered with the same agency for a job and was given one. They lent me $400.00 at the time so I could work for the first week. I was unable to take the job and I had forgotten about this debt even after I re-registered with them. They have now located this debt in their books and are seeking to collect. That's fine but, they want to take (and are witholding already) all the pay I have earned in the last two weeks. Can they do this? I have suggested a payment plan. Can you help?
1 Answer from Attorneys
Re: Employer Debt Collection
This is very unfriendly of them. It is tough to have a 'cushion' working temp jobs.
Regarding the legality of their position, I have not looked up the specific laws, but the document you signed when you accepted the money will control their rights.
If it specifically says, in writing, that you can work off the debt, then they may withold your wages. Otherwise, they may not garnish (take) your wages without a court order.
If there is some way to negotiate/compromise, that would be my recommendation.
Good luck.