Is there anything an employer can do to recover an outstanding loan from an employee upon termination?
HRCalifornia
Although an employer cannot deduct the amount of an outstanding loan from an employee’s final paycheck, an employer can enter into a written agreement or promissory note with an employee specifying that the employee will be required to repay the loan.
The agreement should include the amount of the loan and clearly state the terms of the loan repayment.
Repayment of a loan by an employee must be made by check or other means to the company, not by a payroll deduction.
If the employee refuses to pay back the loan, the employer can choose to go to small
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