What If the Equipment Was Damaged or Lost While I Had It? Can They Still Withhold Final Pay?

If you’re leaving a job and realize that company equipment you were issued—like a laptop, phone, or tools—is lost or damaged, you might be wondering: “Can my employer take that out of my final paycheck?”

The short answer: It depends on your state and what you agreed to.

What the Law Says

In many states, employers can’t deduct the cost of damaged or lost equipment from your final paycheck unless:

• You gave prior written consent (usually in an employment contract or equipment agreement)

• The deduction is allowed under state wage laws

• The deduction doesn’t bring your pay below minimum wage

In some states—like California or Massachusetts—it’s generally illegal to deduct anything, even if the equipment was clearly damaged due to neglect.

What You Should Do

• Review anything you signed when you received the equipment. Did it mention responsibility for loss or damage?

• Communicate with HR before your last day. Honesty goes a long way.

• Ask for a written breakdown if they claim they’re deducting from your final pay.

• Return what you can, even if it's damaged—they may still accept it.

If They Do Deduct Without Permission

You may have the right to:

• File a wage claim with your state’s labor department

• Recover the full amount of wages owed

• Potentially collect penalties and legal fees, depending on your state

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.