Do you know how to pay an employee’s last pay check who has been fired or quit?
You should make sure that you are ready to comply with the final paycheck laws that your state has in place whenever an employee leaves.
There are a number of states that require employers to give a departing employee his or her final paycheck in a pretty short amount of time. In fact, some states even require that departing employees get their last paychecks on their final day of work. In other states, the time limit depends on whether the employee voluntarily quit or was fired.
If you are an employer, you should take careful note of these laws. Many employers often break these laws out of ignorance, and there can be consequences if your former employee calls you on it. There are often penalties for violating the final paycheck laws, and if a former employee sues you, you could be required to pay for their attorney’s fees as well as court costs.
In addition to these final paycheck laws, many states also require employers to pay out unused vacation days to departing employees. Although this article will not discuss these laws, you should still be familiar with them.
Information found on Findlaw.com