Can employer set up an escrow account for all employees that they are entilted to.

Employer is asking if an escrow account can be set up for all employees, and they would receive this amount of money at the end of their employment IF they turn in a notice.
Is this possible? If so, if they are terminated - are they still able to get the funds from this account?

2 answers  |  asked Feb 25, 2011 08:56 AM [EST]  |  applies to Ohio

Answers (2)

Bruce Elfvin
While not entirely clear, if the escrow account is to take some portion of current pay and deposit it into an account that would be paid to the employee, provided the employee gives notice, then there are problems with the proposal. If the employer is putting additional money in a pot, then this would probably be legal.

It is probably a good idea take any papers or descriptions and see an employment attorney near you to review this proposal. You can select one near you at

posted by Bruce Elfvin  |  Feb 25, 2011 1:01 PM [EST]
Robert Kapitan
Earned wages cannot be withheld upon termination of employment, which would include wages, bonuses and commissions. What you described sounds more like an incentive payment for providing notice before you leave. That sounds perfectly legal. The manner in which the money is set aside, escrow versus regular company assets, will not make a difference. And I do not believe that failure to make a payment upon involuntary termination would be unlawful.

posted by Robert Kapitan  |  Feb 25, 2011 09:02 AM [EST]

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