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Can a township employer withhold a final paycheck until the former employee returns all township property in their possession?

No. Michigan employers may not withhold a paycheck even if an employee (or former employee) has retained the employer’s property. The paycheck is due according to the regular payroll practices of the employer. While your township may be able to take legal action to recover its property, failure to pay wages is not one of the options available.

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At Fahey Schultz Burzych Rhodes PLC, we’ve been helping municipalities, franchised businesses, employers, and more with their legal needs since 2008. We’d love to learn how we can help you, too.