Legal Question in Business Law in Pennsylvania

Refusal to pay final paycheck.

I am a partner in an S corp. I am leaving and moving to a new job. We only paid ourselves commision on sales, and my soon to be ex partner is witholding my last commission check.Stated the reason was to pay for terminating our 401k plan if it went over a certain cost. Found someone to terminate the plan below the cost he stated, but I think he is still trying to withold pay. Is this legal and what are my options?


Asked on 12/09/06, 10:09 am

1 Answer from Attorneys
Douglas Humes Law Office of Douglas P. Humes

Re: Refusal to pay final paycheck.

Commissions that you have earned should be dealt with separately from any plan termination costs. If you are not paid the commissions that you have earned, then you have the right under the Pennsylvania Wage Payment and Collection Law to recover the wages/commissions due you, plus (if you must go to court and if you win your case) the possibility of recovering your legal fees plus (in certain circumstances) additional damages equal to the greater of 25% of what is due you in wages, or $500. Generally the threat of this type of claim, coming in on an attorney's letterhead, is enough to bring the employer to their senses, and force payment of what is due. If I may be of assistance, please let me know.

Read more
Answered on 12/09/06, 4:00 pm


Related Questions & Answers

More Business Law questions and answers in Pennsylvania