Can an employer legally take a check that is written out to you from a third party?

Some csrs in our office are paid by a company that the office does business with to perform a service related to our job. In return for doing so we are paid from that third party by a check written out in our names. The business that writes the checks refuses to pay our employer becase they feel the money should go to us. The company we work for is of the opinion that the money is theirs and has required us to turn the checks over to them at which point they are stamped pay to the order of my employer. Is this legal? If it matters the state is Michigan.

The other company is not taking over - it is giving out incentives for performing the job in the manner in which they approve. So in the course of doing my job for my employer, if I comply with the other companys regs about doing things correctly, I am paid an incentive. I am 1099d for that money by that company and now my employer says its their money. In addition to paying me this incentive my employer also receives commission which they keep a percentage of and pass on some to me. but this incentive money is being taken 100%. and I will be taxed at 100% of the IRS rate.

This is certainly a shady way to do business. I have never heard of a third party paying directly to someone else's employees - regardless of the fact that you do the work.

Seems like the outside company wants to take over. They should in no way be issuing checks to people who are not their employees. Whose taking care of your payroll taxes?

Regardless, this company cannot make you sign over your check to them.

Does this mean you do not get paid at all? I think you are missing a few details, here.

No, not without your permission,

but, if you refuse permission, they may fire you and hire someone who will put up with it.