Be sure you know your state’s rules for delivering a final paycheck when someone leaves your employment. Not following the rules can put your company at risk of penalties for violating the final paycheck laws, and if a former employee sues you, you could be required to pay for their attorney’s fees as well as court costs.
Here is a brief summary of our most popular states:
Termination wages are due to the worker on the next regularly scheduled payday regardless of whether the worker quit or was fired.
Generally, an employer must issue a final paycheck to an employee immediately if the employee is being fired or laid off. The final paycheck must include all unpaid wages and any unused vacation time. However, an employer must issue a final paycheck to an employee who has resigned not more than 72 hours following the resignation, unless the employee has given 72 hours notice of his or her resignation, in which case the final paycheck must be issued on the date of resignation.
If an employee quits with less than 48 hours notice, excluding weekends and holidays, the paycheck is due within five days, excluding weekends and holidays, or on the next regular payday, whichever comes first.
If an employee quits with notice of at least 48 hours, the final check is due on the final day worked, unless the last day falls on a weekend or holiday. In that case, the check is due on the next business day.
If an employee is discharged, the final paycheck is due not later than the end of the next business day.
When an employer and employee mutually agree to terminate the relationship, the check is due by the end of the following business day, as in the case of discharge.
When employment is related to state and county fairs, and employment terminates on weekends or holidays, the check is due by the end of the second business day after the termination.
If you want to know the rules for a state not listed above, just ask us.