web analytics

Ask the Expert: When Can Employers Withhold a Sign-On Bonus?

This post was originally published on this site

Question: We gave a $5,000 sign-on bonus to a new hire who has been a no-show for numerous days, and we haven’t been able to contact them. Can we withhold and/or deduct from this employee’s final paycheck to recoup some of the sign-on bonus?

Answer: Most likely, no. Unless the employee signed an agreement giving you the right to do so, withholding or deducting wages for hours actually worked constitutes an involuntary deduction in violation of federal law—specifically, the Fair Labor Standards Act (FLSA)—and most (if not all) state wage and hour laws.

If you are considering sign-on bonuses,

Read Full Story

See also  Connecticut Expands Paid Sick Leave
,

Get the Latest HR Headlines

* indicates required

HR NEWS MARKETPLACE


»Hire Quality Talent Faster with FastTalent


»Diversity and Inclusion Job Board


»RecTech PR Newswire


»HR News


»Recruiting Newsletters


»HR Tech News


»HR Freelancers


»Jobs with Relocation Assistance


»Diversity Hiring News


»Recruiter Ebooks