Properly Pay an Employee's Final Wages: New Task, FAQs Added
Author: Rena Pirsos, XpertHR Legal Editor
September 16, 2015
State laws and regulations govern when an employer must provide the final wage payment to an employee who is voluntarily or involuntarily leaving employment, as well as the applicable penalties for failing to comply with these laws.
State laws require the final wage payment to be issued either at the time employment officially ends, within a certain number of days after employment ends or by the next regular payday. Under these laws, the timing rules may differ for voluntary separations and involuntary terminations. Additional special rules may apply to employers in certain industries and for temporary layoffs, lockouts and strikes.
An employer should also be aware that the laws of some states may have specific provisions regarding payment of unused accrued vacation time on separation or termination, while in other states it depends on the terms of the particular employer's policy, handbook, employment contract or collective bargaining agreement, if any.
To assist an employer in properly paying final wages to an employee whose employment has ended, XpertHR has added a new Task, titled Pay an Employee's Final Wages. In addition, the following six new FAQs have been added to the site and are included in the new Task:
- How should an employer report wages and benefits paid to an employee in anticipation of employment if the employee is terminated before the first day of work?
- Is an employer permitted to dispose of the direct deposit authorization forms of former employees?
- If a former employee has not paid back an outstanding travel advance received before he or she separated from employment, should the employer include the advance in the former employee's taxable income?
- If an employee is fired unexpectedly, how can the employer satisfy state law requiring the employer to pay the employee immediately?
- If an employee who is subject to wage withholding for child support quits, what should the employer do with the child support order after issuing the employee's final paycheck?
- Can an employer pay an employee's final wages on a paycard?