Employer Must Give Final Check
at Time of Termination
Are you wondering how much time you have to give an employee his/her final paycheck?
According to the California Chamber of Commerce Alert, employment practice laws say an employee must be paid all wages owed at the end of employment, including any accrued vacation pay.
Employers who do not pay final wages on time may be subject to "waiting time penalties" which include the employee's daily wages up to a maximum of 30 days, and possibly an assessment for an employer's "willful failure" to pay final wages.
If the employer terminates the employee, then final wages are due immediately. Employers who have their payroll prepared at a location different than the work site or by a payroll service, should notify the service in advance, or be prepared to issue a manual check under these circumstances.
Therefore, if an employee gives notice on Monday that Friday will be his/her last day, the final check must be handed to the employee no later than Friday, the last day of employment.
When an employee quits without notice, an employer has up to 72 hours to prepare the employee's final check. This includes weekends and holidays. Therefore, if an employee quits on a Friday without notice, the final paycheck would have to be ready the following Monday.
However, if the employee says on Monday that Wednesday will be his/her last day, the check must be available no later than Thursday -- within 72 hours of the employee giving notice.
In addition, when an employee quits without notice, many employers are unsure what to do with the final paycheck -- whether to hold on to the check or mail it to the employee. Employers must make sure that the check is available at the work site. If the employee requests the check be put in the mail, the employer may do so. However, the employer should document this request and attach a confirming letter to the check.
Note: There are special timing requirements for final paychecks in certain cases including seasonal employees in the curing, canning and food preservation industries, motion picture industry, and the oil drilling industry.
We are pleased to provide this "Bulletin" as a service to you. While this information was obtained from sources believed to be reliable, its accuracy is not guaranteed. It does not change or alter insurance contracts or coverages.
License # 0655631
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