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I am an employer in California. An employee left. She still has not returned the correct office key, and copyrighted manual that is unique to our company and the service we provide. I wanted to withhold her last paycheck or expense check till we received these items. The manual could be used by her as she is becoming an independent provider and will compete against us and will work at some of our current customers.
Rita Risser's response:
Under California law, you cannot withhold the final paycheck of an employee (in fact, it is due within 72 hours of the time they gave you notice of quitting, or on their last day of work if they give you more than 72 hours notice of quitting).
Your only recourse is to sue her in small claims for the key back (but if the key could be duplicated by a locksmith, I recommend you re-key the locks anyway). As for the manual, again you can sue in small claims but she could have the whole thing duplicated.
You do have the right to prevent her from using your copyrighted material. You also have the right to prevent her from using trade secret information about your customers. Best thing to do: ask your closest customers to let you know if they hear from her. You can sue in federal court for copyright protection, a restraining order, or other relief. It may be worthwhile to hire an attorney just to write her a letter explaining her legal responsibilities.
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