What are my rights if my final paycheck is being withheld for not returning IT equipment?

If your employer is withholding your final paycheck because you didn’t return company property—like a laptop, phone, or keys—you may be wondering: Can they really do that?

The answer depends on two key things:

1. Your state’s labor laws

2. What you signed during your employment

Your Rights Under State Law

In many states, it’s illegal for an employer to withhold or deduct from your final paycheck without written authorization—even if you failed to return company equipment.

• Some states (like California) don’t allow wage deductions for unreturned property at all.

• Others permit it only if you gave prior written consent, such as in your employment agreement or a signed property return policy.

If your employer is holding your paycheck without following the law, you may be entitled to:

• The full amount owed

• Waiting time penalties (in some states)

• Reimbursement of legal fees if you take legal action and win

What If You Don’t Return the Property?

Even if they can’t legally withhold your wages, your employer may still:

• Send you a bill for the value of the equipment

• Pursue the matter in small claims court

• Hire a collections agency

It’s in your best interest to return all company IT gear promptly and keep documentation proving you did.

Final Tip:

If your paycheck is being withheld, contact your state labor department or a local employment attorney. You have rights—and there are legal ways to enforce them.

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.