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[OR] Can I delay the final paycheck if a terminated employee refuses to return company property like a store key?

Andrew F., Esq.
Andrew F., Esq.

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In Oregon, this situation intersects two separate areas of law that operate independently: the employer’s duty to timely issue a final paycheck, and the employer’s right to recover company property.

Under (OR Rev Stat § 652.140), when an employee is terminated, the employer must pay all final wages by the end of the next business day, and you may not condition payment on return of keys or property. Withholding the paycheck can expose you to penalty wages under (OR Rev Stat § 652.150) (up to 30 days of wages).

You should issue the final paycheck immediately (e.g., certified mail), and separately document your request for the key. After that, treat the key as a property issue. You can send a written demand for return and potentially pursue reimbursement for rekeying or file a police report or small claims action if necessary.

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I have an employee in Oregon that I fired on Sunday. He has a store key that he now refuses to return. I told him to bring his key back to the store then he can pick up his final check. His final check was ready for him the day that I fired him. What are our options?

Lexi

Lexi, Chatbot

I understand how frustrating it can be to deal with a situation like this. Have you documented the communication you've had with the employee regarding the return of the key?

No, other than my text to him to return the key and he can pick up his final check, he did not return my text and he has only communicated with other employees who relay the message to me.

Lexi

Lexi, Chatbot

Is there any specific company policy in place regarding the return of property after termination?

No.

Lexi

Lexi, Chatbot

Is there anything else the employment lawyer should know before I connect you? Rest assured they'll be able to help with your key return issue.

No.

Lexi

Lexi, Chatbot

Thank you for the information. Since you are in Oregon, it is important to adhere to the state's labor laws regarding final paychecks and property return. Here are some steps and considerations:

Final Paycheck: Under Oregon law, if an employee is terminated, their final paycheck is due no later than the end of the next business day. You cannot withhold the final paycheck pending the return of company property, such as a store key.

Document Communication: Although you have not documented communication yet, it is advisable to start doing so. Send a formal written request to the employee, preferably via certified mail or email, requesting the return of the store key. This will serve as evidence of your efforts to retrieve company property.

Legal Recourse: If the employee continues to refuse to return the key, you may consider taking legal action. This could involve filing a police report for theft or pursuing a civil claim for the value of the unreturned property. However, it is often beneficial to attempt to resolve the matter amicably first.

Consult with an Attorney: Given the potential legal implications, consulting with an employment attorney in Oregon can provide you with specific guidance tailored to your situation. They can advise on the best course of action and assist with any legal proceedings if necessary.

For further assistance with employment agreements or termination documents, you may find helpful resources online.

If you have any further questions or need additional assistance, please feel free to ask.

Yes. Hi, am I connecting to a lawyer?

Andrew F., Esq.

Andrew F., Esq.

Good day and welcome. Please give me a moment to review your question. Note that I am a hearing impaired expert and so phone calls are difficult for me. Thank you for understanding.

Just so you are aware, this is a legal information only site. I do not provide representation and no attorney-client relationship is formed. My answers should not be considered legal advice.

Is there anything specific you would like to know about handling the return of company property?

My parents own the business and my mom wants the employee to return the key or file a police report. My dad just wants to make sure that we met our legal obligation to issue a final check within 24 hours of being fired even if he doesn't return the key or pick up his final check.

According to another employee, he said he would not be returning the key. Since we told him to drop off the key then he can pick up his final check, he said he wouldn’t be coming for his final check.

Not sure where we stand legally.

Andrew F., Esq.

Andrew F., Esq.

In Oregon, this situation intersects two separate areas of law that operate independently: the employer’s duty to timely issue a final paycheck, and the employer’s right to recover company property.

Under ORS 652.140, when an employee is terminated, the employer must pay all final wages by the end of the next business day, and you may not condition payment on return of keys or property.

Withholding the paycheck can expose you to penalty wages under ORS 652.150 (up to 30 days of wages).

You should issue the final paycheck immediately (e.g., certified mail), and separately document your request for the key.

After that, treat the key as a property issue. You can send a written demand for return and potentially pursue reimbursement for rekeying or file a police report or small claims action if necessary.

Does that make sense?

What? No, you didn't send me any answer to my question.

Andrew F., Esq.

Andrew F., Esq.

You must have missed it. Let me copy it again.

Andrew F., Esq.

Andrew F., Esq.

In Oregon, this situation intersects two separate areas of law that operate independently: the employer’s duty to timely issue a final paycheck, and the employer’s right to recover company property.

Under (OR Rev Stat § 652.140), when an employee is terminated, the employer must pay all final wages by the end of the next business day, and you may not condition payment on return of keys or property. Withholding the paycheck can expose you to penalty wages under (OR Rev Stat § 652.150) (up to 30 days of wages).

You should issue the final paycheck immediately (e.g., certified mail), and separately document your request for the key. After that, treat the key as a property issue. You can send a written demand for return and potentially pursue reimbursement for rekeying or file a police report or small claims action if necessary.

Andrew F., Esq.

Andrew F., Esq.

Does that make sense?

Yes, that message did not send. And yes, that makes sense.

Andrew F., Esq.

Andrew F., Esq.

Best of luck to you my friend.

Andrew F., Esq.

Andrew F., Esq.

42 satisfied customers

Andrew F., Esq.
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