When Is an Employee’s Final Paycheck Due?
Saying goodbye is never easy. Depending on what state your business operates in, you may need to provide departing employees with their last paycheck well before your next scheduled payday. In states like California, you’ll have to do so immediately if the employee was fired. Failure to abide by that rule could result in additional “wait time” penalties, requiring you to pay out wages for each additional day the former employee is unpaid.
Below we’ve listed the states that have final paycheck laws on the books. Note that most of these distinguish between scenarios where the employee voluntarily leaves or is fired.
Does your business have offices in multiple states? Because these laws are intended to protect workers first and foremost, note that they apply to where the employee is located, not where your office headquarters happens to be. To learn additional tips for managing multistate compliance, read the Ultimate Guide To Multistate Employment.Not all states have laws covering last paychecks. In these instances, we recommend compensating the terminated employee no later than your company’s next payday. The Department of Labor encourages individuals who have not received their pay in a timely manner to file a claim with the agency.
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