Paying terminated employees???????

sbt

I have always been taught that if an employee is involuntarily terminated, they must recieve their final check within 3 days. Is this correct? What about when an employee gives two week notice and we (the employer)opt to end employment at that time (it says in our manual that we have that option)? Our manual also says they will not receive their final check until all company property is returned to include uniforms and manuals and ID cards etc. I do not think this is legal. If an employee gives notice and serves that notice I believe that they can be paid on the next regularly scheduled payday. Is that correct? Thank you in advance, I realize that is quite a few questions.


Bud Turner
[email]sbturner@ix.netcom.com[/email]

Down_the_Middle

Bud:
The best source for your answer will be your state law. Each state is a little different with regard to how/when paying terminated employees, so i would recommend checking your relevant statute. Illinois, for example, requires immediate payment to the departing employee, if possible, otherwise at the next scheduled pay day.

sbt

I access this through my "Texas Employment Law Letter" and sometimes forget that this is a national forum. I agree that it is a state specific question. Thanks for your response. Any Texas employers out there want to take a crack?

Theresa Gegen TX

In Texas, the labor code provides that an employee who is fired must be paid within 6 calander days. Lab. Code 61.013.

If the employee quits, the employee can be given his or her final paycheck on the next regularly scheduled payday.

An employee who gives 2 weeks notice, and the employer says get out now, I would consider to be fired (not quit) and pay with 6 days. If the employer is paying the 2 weeks -- even though the employee does not have to continue working, then I would go with the next scheduled payday.

Deductions from pay and withholding paychecks is not authorized by the law -- execpt if the employee has agreed in writing (and the deduction is otherwise lawful). A policy in a hand book may not suffice as a specific authorization.

Texas Labor Code 61.018.

Note: If you have employees in other states, you need to be aware that the law varies considerably by state (for example, in California, the terminated employee must be paid immediately).

Good Luck!

Lori B

The American Payroll Assoc has some good summaries by state here. I find their material useful since these issues do vary by state.

Theresa Gegen TX

Another place you can generally find pay day information for a specific state is by looking at their workforce commission website. The Texas Workforce Commission has a very good site, with a lot of good free info.