An employer cannot hold a final pay check for non-return of company equipment, according to the Fair Labor Standards Act (FLSA). Some states allow employers to deduct such costs from the final pay check, while others prohibit these deductions entirely. It is illegal for an employer to withhold pay for any time an employee has worked, including overtime.
According to the United States Department of Labor, the Fair Labor Standards Act (FLSA), is a federal law that specifies employer responsibilities. Under the FLSA, wages are due on the regularly scheduled date set by the employer for the pay period, as long as the employee works during the relevant pay period.
The FLSA also sets the minimum standards for employment within the U.S. For example, the FLSA prohibits withholding pay to discipline an employee for poor performance explains U.S. News & World Report. Some states have additional employment laws that add to the FLSA, such as setting a higher minimum wage.