I have a question. I terminated an employee because she was dishonest and unethical. I paid her half cash and half check; however because I forgot to change the signing sheet, I forgot she also get the check. I actually overpaid her for five month equaling $1400. I finally found out in the fifth month and confronted her. She reluctantly pay me back $400 hundred dollars but refused to pay the rest of the months saying it was my problem, not hers.
I terminated her and refused to pay her the seven days worth of pay. She cried foul and said she never received that much money from me, but everyone saw her counting the money each time.
She had her son-in-law called me and threated a law suit saying that I cannot withhold his mother-in-law money and that I can be sent to jail. When I mentioned that his mother-in-law is also commiting a crime by accepting cash and social socurity, he said that she's not a U.S Citizen; so therefore, she cannot be in trouble.
So my question is what is my penalty for paying my employees half cash? Can I lose my business license and possibly even jail time? Also, do I have the right to deduct her pay because I overpaid her last time? I have a signing log with her signature everytime she was paid.
And what is the penalty for my former employee? Can she be deported back to her country and lose all her social benefits?
Thank you for your time. Oh, by the way, I live in California.