How to Handle the Last Paycheck for a Terminated Employee

Firing employees is never easy. They may have violated your company’s code of conduct and need to be escorted out immediately. They may be very good people but just incapable of handling the work and stress of the job. Whatever the case, there is a sticky issue of how to handle their final paycheck. The laws regarding this vary from state to state, so if you have any questions, definitely do your research. Here are some things to keep in mind.

Quit or fired? Some states have different provisions for individuals who leave a position and those who are terminated. You may want to check the laws in your state to determine what is required of you in both of these circumstances.
Next regular payday. For most states, the regulation actually states that the employee will be paid on the next regular payday. Even in these states, many employees believe that the paycheck needs to be cut immediately, but this is not true. You may want to include this information in your employee handbook if it applies to your state.
In person or through the mail? Another choice you should make is whether you want to have the employee pick up the check or you want to mail it. If the termination is because of an extreme violation of company policies, you may want to mail it in order to protect yourself and the rest of your staff. Make sure you have the employee’s up-to-date address on file, and make the person aware of your policy.

Are you concerned about the paycheck rules for your terminated employees?

Contact: Amy Brown (865) 312-9143