What About That Final Paycheck for a Departing Employee?

What About That Final Paycheck for a Departing Employee?

Whether your employee has been let go or has decided to move on to a new chapter in his or her life, chances are they will have a final paycheck. So, what do you do as a Human Resources manager?

The trick to properly handling the final paycheck for a departing employee is to learn your state’s laws. Each state actually has its own law as to what a company must do in regards to an employee’s final paycheck. However, keep in mind that this does not refer to employees that are being relocated to another department or branch in most cases.

Some states actually require the company to give the department employee their last paycheck on their last day. However, most states offer a variety of time limits depending on whether the employee was let go or quit on their own. Other states require that employers pay out any unused vacation or sick time.

Unfortunately, many businesses break these rules simply because they don’t know. If you aren’t sure what your state requires, be sure to look it up! Keep your business moving in the right direction by following the rules.

In fact, once you become aware of what your state requires, it may be in your best interest to include that information in your HR handbook and share the information with your staff. As a recruiting manager, you may even be asked by a new employee moving into the area, what your state’s laws are.  Laws vary so much, so you better check it out.

Jon Huser