What to do if my company owes me $12K in back wages and it has agreed to pay me $5000 but only if I agree to sign a Hold Harmless agreement for the rest.?

UPDATED: Jun 6, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Jun 6, 2012Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

What to do if my company owes me $12K in back wages and it has agreed to pay me $5000 but only if I agree to sign a Hold Harmless agreement for the rest.?

Is this legal on their part? They are essentially holding my wages hostage and asking me to sign my rights away for legal recourse to the rest of the money owed.

Asked on June 6, 2012 under Employment Labor Law, Connecticut


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Yes, it is legal--anyone may agree to settle a debt for less than the full amount, and to give up any right to sue or other legal claim.

You are not required to agree; if you believe you are owed $12k in unpaid wages, you could sue the company to recover that money. Bear in mind that even good suits are not certain (you may be very likely to win, but it's never guaranteed); a lawsuit takes time (often up to 2 years or more); and if between when you start the suit and when it concludes, the company goes bankruptcy or out of business, you might not be able to recover anything. Bearing all that in mind, decide whether accepting $5k now is better than possibly getting $12k later.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption