Final Paycheck
rsclark
6 Posts
How long do I have to pay a terminated employee?
rsclark
6 Posts
Comments
The only execption is that if the employee was terminated in a mass layoff, he may be entitled to 60 days notice or pay.
If your question is "when do I have to get him his paycheck", that will be decided by state law.
In Texas, if the employee is terminated by the company, pay must be given in 6 days. If the employee quits, final pay must be given on last regular payday.
But in California, pay must be given in 24 hours from the termination.
So you need to check your local state payday laws on this one.
Good Luck!
Actually, in California, if an employer terminates an employee or lays him/her off with no specific return date within the normal pay period, all wages and accrued vacation earned but unpaid are due and payable immediately - section 201 of the California Labor Code.
Also, if the employee quits with more than 72 hours notice, all wages and accrued vacation earned but unpaid are due and payable on the last day of work.
If the employee quits with fewer than 72 hour notice, then all wages and accrued vacation are due and payable not later than 72 hours after notice is given.
With 450 store managers, this has been an on going problem with our company regardless of the number of times we have told them. Part of the job!
I am certain that our way of handling final pay at store level is unique. The store calls our General Office for the employee's pay out. The money owed to the employee is then taken from the store's petty cash and later reimbursed by our payroll department. Payroll can cut a special check and Fed-X it to the store on those occasions when the store does not have enough cash to pay out. It is sticky because the manager obviously knows that he/she will be terminating the employee, but may wait a day to do so until the check is received. If the reason for termination is a serious company violation, the employee has probably been on suspension.
More than you cared to know, I'm sure!!
I think that your question also is dealing with if the employee is a salaried employee or if the employee is an hourly paid employee. If the employee is paid on an hourly basis, then you only have to pay the employee for hours worked. For example, you stated that this employee worked for less than 2 weeks. Let's say that she worked the first week M-F and then during her 2nd week of employment only worked Monday and Tuesday, then no-called/no-showed on Wednesday and Thursday, then showed up on Friday for her paycheck. You are only obligated to pay that employee for the first week of employment including Monday and Tuesday of the 2nd week. You are not obligated to pay the employee for Wednesday, Thursday and/or Friday – she is technically no longer working for your organization past Tuesday of the 2nd week. Again, this is if we are talking about an hourly paid employee.
A salary paid employee must receive all wages for the pay period - you should not try to break down the employee's salary on a daily/hourly basis and then figure the wages. You must pay her normal salary that you would have paid her.
Again, I would still check your state laws regarding this situation - each state is different as noted by previous posts. Also, don't get to hung up on what the employee is saying about your state laws. Some people "think" that they know the law and will try to intimidate HR professionals by quoting the law. Just for your future reference, you should know your state specifics on this case—both in resignation and termination situations—this will not be the last time that you encounter this situation. Good luck!
If I misunderstood you, sorry.
You took the words right out of my mouth!
Mel,
She's right, you only pay through last day worked. By your calculations then, if I quit on the second day of a 2 week pay period, I'd get paid for the entire two weeks! What a deal, can I come work for your company???
Also, when I left a former employer here in Colorado, I resigned in the middle of the pay period and I received my full salary upon resignation. I know that this law is mandated by FLSA (federal law) but could state laws play a roll in this as well - with CO being more gangrenous? I am just going off of what I have experienced and what I was advised by my attorney. I think that rsclark still needs to check state laws regarding his personal case.
>gangrenous?
I want to know more about Colorado, and its gangrene level.
Oops! Egg on my forum face. You know, it does get pretty cold out here in CO! :-)
If the employee is fired (which is probably the case here -- unless the employee admits he vol quit), you must pay him within 6 calander days of the date he was terminated. So if the employee is fired on the 6th, he must be paid by the 12th, which would be 3 days before the next regularly scheduled payday.
Good Luck!
Good luck