If an employee is fired unexpectedly, how can the employer satisfy state law requiring the employer to pay the employee immediately?
Author: Alice Gilman
The employer can do any of the following things to avoid penalties for failure to pay a terminated employee on time:
- Overnight the final paycheck to the employee.
- Wire-transfer the payment to the employee, with the fee paid by the employer.
- Pay the employee with a check from accounts payable, from which appropriate taxes have been withheld.
- Pay the employee by paycard (assuming the employer can satisfy all paycard laws).
- Put the employee on paid suspension until the final paycheck can be prepared.
- Pay the employee in cash (if practical), provide any required pay statement information and have the employee sign a written, dated statement that he or she received the payment.