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  1. #1
    Join Date
    Sep 2016
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    Default Can You Withhold Pay from an Employee Who Took a Job With a Client

    A Massachusetts staffing agency has a client that owes it a lot of money. They found out that the client has hired an employee that they sent to the client to perform services, with neither the client nor the employee informing them of the hire; they did know that the employee resigned, but not why. Can they withhold the employee's last paycheck due to her apparent collaboration with a client that is trying to find ways to avoid paying its bill?

  2. #2
    Join Date
    Sep 2005
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    98,846

    Default Re: Can You Withhold Pay from an Employee Who Took a Job With a Client

    The employer should not withhold the employee's wages. That will cause the employer nothing but legal grief.

    If the employer has a contract with the client that prohibits it from hiring employees sent to provide services for a period of time (e.g., one year from the date of last service) or requires a referral fee for any employee hired by the client, the employer can talk to its lawyer about how it might enforce its contract. If it has a contract with the employee that prohibits the employee from taking work for a client for a specified period of time after resignation, then the employer can have its lawyer review the contract language and the facts to see if a court would be likely to enforce the non-complete clause.

    If the client is no longer using the employer's staffing services, the employer can also speak to its lawyer about whether it is time to start being aggressive in its collection efforts for any late payments.

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