Can my employer legally withhold my final paycheck if I haven't returned company property?

It’s a question many employees ask when leaving a job— “Can they hold my last paycheck if I haven’t returned my laptop, phone or other gear?”

The Short Answer: It depends on your state and your agreement.

In some states, employers can deduct the value of unreturned property from your final paycheck—but only if:

• You signed an agreement authorizing it

• The deduction is legal under state wage laws

• The value is documented and reasonable

In other states, it's strictly illegal to withhold any part of your paycheck—even if you haven't returned a company device. Employers who break this rule could face wage penalties or lawsuits.

What You Should Do:

• Return the property ASAP to avoid delays or disputes.

• Ask for written confirmation that your final check will be processed in full.

• Check your state’s labor laws or consult your HR rep if you're unsure.

Bottom line: Your employer can’t just make up the rules. Final paycheck laws are there to protect you—and returning company property helps protect your own reputation and legal rights.

The insights provided herein are for informational purposes only and should not be construed as legal advice. The information is not exhaustive, and laws vary significantly by jurisdiction and specific circumstances. You should consult with a licensed attorney in your relevant jurisdiction for advice regarding your individual situation.