I attended a FEDERAL labor law seminar not too many years ago, conducted by practicing labor law attorneys.

The one thing I took away from that................as an employer, a person cannot withhold ANYTHING from a person's paycheck, unless that person/employee has approved the withholding in writing ahead of time.......unless of course the withholding is a matter of law, such as payroll taxes.

So...................we ALWAYS have a new hire sign an agreement to allow us to withhold any moneys owed to company from any compensation due him, including any payroll advances, advances of vacation time that is not yet earned, etc etc.   Becomes a condition of employment, discussed at time of interview.

In addition..............and this is the kicker...............cannot withhold any thing from a person's compensation UNLESS all parties with a vested interest in that check also approve----------like a wife.

So................the wives have to also sign the agreement when the husband hires on.

Makes no difference as to the purpose to which the money was put----------groceries, gambling, booze, makes no difference.

Now...........a question.................where does the live-in girl friend/boy friend fall?   Are they a vested interest??

That issue was never addressed in the seminar, and I wasn't quick enough to think of it at the time................and I have not done any research to find out since...............but I now have the problem in more than one case.

In one case, a female ee has borrowed some money..........."I'll pay it back with tax refund"-----------"you got your tax refund"-------------"Oh, I meant the NEXT refund."

Ok, sign a note...............but what about the live-in boyfriend, with whom she has been living for over five years, and who is holding himself out as the "new daddy" of her three kids?????

She does not want the guy to know she borrowed some money..............if I require him to sign the note/withholding agreement.........all hell will break loose for her..........and HER three kids.    I don't need that problem right now.

So...................I think the next best thing is to have her sign an indemnification clause, wherein she agrees to reimburse me for any costs incurred in defending a collection from her check due to the invoking of the spousal relationship.................which, I think, would cloud the issue of the bf hollering that I cannot withhold because of his relationship,..............and then in the next breath trying to say that he has no responsibility in making liquid "her" share of the assets in the event of having to exercise the indemnification.

Shouldn't have let her get the cash at the front end..............shoulda, woulda, coulda........... 

But...............unless they have changed the "spousal interest" rules.................be alert.   check with a good labor attorney.