What are the best practices for issuing a final paycheck to a terminated non-exempt employee?

Federal Law Overview Federal law](http://www.dol.gov/dol/topic/wages/lastpaycheck.htm) doesn’t require employers to immediately issue former employees their final paycheck. However, [state laws vary widely, and often have a lot to say about final paychecks. State Law Overview In California, for example, a final paycheck must be issued immediately following an employee’s termination. Consider State laws regarding the timing […]

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Federal Law Overview

Federal law](http://www.dol.gov/dol/topic/wages/lastpaycheck.htm) doesn’t require employers to immediately issue former employees their final paycheck. However, [state laws vary widely, and often have a lot to say about final paychecks.

State Law Overview

In California, for example, a final paycheck must be issued immediately following an employee’s termination.

Consider

State laws regarding the timing of issuing final paychecks are clear. But there are no specific laws requiring employees to do any further work, or maintain any verbal agreements after a final paycheck has been issued. Therefore, timing the termination and delivery of a final paycheck is imperative for employers.

For example, delivering a final check for an employee that includes an assumed final day of work is a risk, because the terminated employee may decide to take the check and not work the final day.

Final Tips

Be sure to check the laws for your state to ensure compliance with final paycheck law.

Helpful Links

Final Paycheck Laws by State – smallbusinesses.com

Issuing Final Paycheck to Departing Employees – SHRM.org

State Agencies (to contact for wage law discrepancies) – workplacefairness.org

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