Rules for Final Paycheck Vary by State

When an employee quits their job voluntarily or is terminated involuntarily by their employer, it is important for an employer to know the rules regarding any final wages owed to the employee.

Each state’s wage and hour laws determine when and how the final payments are made. Many states have different rules for voluntary resignations and involuntary terminations. For example, some states require a check to be given at the time of termination when the termination is involuntary  but don’t require final payment to be paid to an employee who is voluntarily quitting until the next regularly scheduled pay date. Continue reading

Risky Business: Disciplining Employee with Paycheck

Do these two policies look familiar to you? Do they resemble policies you’ve seen in employee handbooks, or which might be in your employee handbook?OLYMPUS DIGITAL CAMERA

  • “Terminated employees will not be given their final paycheck until they have completed the exit interview and have returned all property belonging to the employer.”
  • “Payday is every Thursday. However, if you are repeatedly absent on Friday, your paycheck may not be issued until Friday.”

Disciplining employees by attaching strings to their paychecks is a common practice among some employers. After all, what better way to discipline employees than by putting their paychecks at risk? But the actual risk is to the employer. Continue reading

Fired Employee Owes Company Money

dollar-653241_1280Q. I fired an employee for violating company rules, one of which resulted in the employee owing the company money.  I withheld the employee’s last paycheck until the money is paid back.  Now the employee has gotten a lawyer and is threatening to sue to get the paycheck.  Do I have to give the employee the paycheck with no guarantee that I will ever get the money back?

Continue reading