Utley v. Mill Man Steel, Inc.

Employer, a steel mill, fired Employee on suspicion that Employee had misappropriated steel from the company. In firing him, Employer refused to pay Employee the commissions he claimed to have earned, asserting that it could withhold the commissions as an offset against the value of the misappropriated steel. Employee filed this action claiming that Employer had violated the Utah Payment of Wages Act (UPWA). The district court granted summary judgment for Employee, concluding that the UPWA did not permit a preemptive withholding of Employee’s commissions. The Supreme Court reversed, holding that the statute allows an employer in a case such as this one to seek a post-withholding opinion of a court or administrative law judge that an offset was warranted. Remanded for a determination whether Employer had presented evidence that in the opinion of the district court would warrant an offset sufficient to justify Employer’s withholding of Employee’s unpaid commission. View "Utley v. Mill Man Steel, Inc." on Justia Law