Most questions concerning what can and can’t be witheld from an employees’ final paycheck usually center on the issue of whether an employer can or can’t hold an employee’s final paycheck until company property, keys, ID badge, etc. are returned. The short answer is “no.” State law mandates time limits for employers to pay employees.
   The next question is frequently, “Well, can I deduct the cost from their final paycheck?”
   This answer is more complicated. Employers, under state law, may only deduct for items required by law (withholding, etc.) or by signed authorization from the employee. Also, employers may not deduct to the extent that employee’s gross earnings are less than minimum wage for all hours worked.
   Often, a final paycheck includes payout of a vacation bank. These are not worked hours. Generally, this entire amount can be withheld.
   Here are some questions to ask when writing an authorization to withhold pay for failure to return company property:

• What is the “cost” for keys; is it the replacement cost or the fee for rekeying the building?
• What is the “cost” for a laptop; is it the depreciated cost of the actual unit or the replacement cost?