In the world of employment, there are both federal and state laws that govern employee wages and benefits. Most states have very specific rules for how employers must treat employees who quit from their jobs, whether they are terminated from their employment, or if they are involuntarily or voluntarily separated from their jobs.
In the U.S., all employees are entitled to a final paycheck. The laws that govern final paychecks vary from state to state. In some states, a final paycheck is required if an employee quits, while in other states, a final paycheck is required if an employee is terminated.
How Soon Can An Employee Receive Final Paycheck?
Employers and employees alike must always be mindful of the tricky matter of paying employees their final pay. Just as everyone wants to receive their final pay check as soon as possible, there are certain laws and regulations that require employers to adhere to certain standards before it can be sent. Most states require an employer to make their former employee aware of the final paycheck requirements, and many require the employer to send the final paycheck within a certain amount of time after the employee’s departure.
State and federal laws regulate how much time employers must wait to pay final paychecks to former employees. The amount of time varies from state to state and job to job. Depending on the state and the type of employment, you may need to wait.
Method of Final Paycheck
Some employers prefer their employees to receive their final paycheck in the form of a physical check, but most still prefer to provide their employees with a direct deposit, or direct deposit transfer. The reason is that it’s easier to control the deposit amount that you are receiving. If the amount on the check is different than the amount you expected, you can easily adjust your checking account to correct it.
Federal Law and Final Paychecks
The federal law, the Fair Labor Standards Act (FLSA), does not require employers to give former employees their final paycheck immediately. Instead, employers can wait until the next regularly scheduled payday to send the final paycheck. The FLSA requires employers to pay their employees at least the federal minimum wage for all hours worked, even if the employee has not worked in a week.
Final Words
The last paycheck an employee receives is usually the final paycheck they will ever get from their employer, and if the employee has not been paid the final paycheck within the time limits specified by law and the contract, and the employer is unable to offer a reasonable explanation for the delay, the worker may choose to file a complaint with the state labor board and/or sue the employer in court. Employers should follow the law and ensure proper final paychecks to avoid legal problems and protect their business’s reputation.
Attend the Compliance Prime webinar to learn more about final paycheck requirements.
