Q: Can i withold an employees pay if they quit without notice if the employee is in breach of contract
A: Not in NY.
A: In many states you cannot. For instance, both CT and NY do not allow you to do so. What you would have to do is pay the employee and then make a demand upon the employee for the money owed to you from the alleged breach of contract. In CT, for instance, if you fail to pay, you can be subject to double damages, ten percent annual interest and attorney's fees. In NY you can be subject to punitive damages, statutory (high) interest penalties, and attorney's fess. Plus, a failure to pay is a criminal offense in certain circumstances in both CT and NY.
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