Termination pay

Does anyone know if it is mandatory to have the last paycheck available at the time of termination? We are in the midst of layoffs due to lasck of business and I would like to let some people go, but one of the people that I am laying off is in charge of payroll. What are some recommendations to handling this situation?

Comments

  • 7 Comments sorted by Votes Date Added
  • Yes, they are due at the time of termination. If you are laying off the payroll clerk, who is going to handle those tasks in the future? That is the person I would have process that check.
  • I've worked in NJ, OH, MI, and NC. In none of those states is the er required to furnish a paycheck at the time of termination. It's always been my practice to pay them with the next scheduled payroll for whatever wages are due them, including hours worked, accrued vacation, any severance, etc.
  • I believe it depends on the state. In NY, we do not have to pay them on their last day, but must pay them at the time of the next scheduled payday. Meaning we cannot hold back the check for any reason.
  • Your answer is state law specific. In Mi the ee must be paid as soon as it can be reasonably calculated but in no event later than the next regularly scheduled pay. Best case: pay on way out!
  • As others have stated, it's based on state law. I do know that California is an example of an "immediate pay state" where paychecks are due within 24 hours of termination. I work in PA and we don't have the immediate pay requirement; we include final pays with the next regular paydate. Check your state law.
  • LABOR CODE
    SECTION 200-243

    201. (a) If an employer discharges an employee, the wages earned and unpaid at the time of discharge are due and payable immediately.
    An employer who lays off a group of employees by reason of the termination of seasonal employment in the curing, canning, or drying
    of any variety of perishable fruit, fish or vegetables, shall be deemed to have made immediate payment when the wages of said
    employees are paid within a reasonable time as necessary for computation and payment thereof; provided, however, that the reasonable time shall not exceed 72 hours, and further provided that
    payment shall be made by mail to any employee who so requests and designates a mailing address therefor.

    You must pay when laying the employee off or terminating the employee, unless you are a seasonal employer covered above. The website below is very helpful for employers in California.

    [url]http://www.leginfo.ca.gov/calaw.html[/url]


  • Thank you so much for giving me this link. It is definitely an invaluable resource.
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