lake How to handle threats from an employee?

You need to contact the police and get this all on record NOW before they do try to extort money from you through the employment board or other means. Believe me when I tell you, the employee is believed by the labor board far more often than the employer. We had a guy who never even worked for us, who stole one of my BIL's work shirts, claim that he worked for us for 2 weeks and we didn't pay him...and the labor board sided with him, even though the name on the shirt wasn't even his! So protect yourself. Get all of this information on record with the police, press any charges you are able to press, and file HRO's whenever possible. (An HRO is a harrment restraining order, which will keep her family from being able to contact you).there