A new law, effective May 11, 2015, addresses the methods by which an employer may pay an employee after the employer separates him or her from payroll.

Background
When an employer separates an employee from the employer’s payroll (i.e., terminates employment), the employer must pay unpaid final wages to the employee within 24 hours of the time of separation at the specified place of payment.

 

Note: Different rules may apply to certain commissioned salespersons.

 

New Law
The new law provides how an employer may satisfy the 24-hour time requirement. An employer satisfies such requirement if:

-The employer mails the wages to the employee, and the envelope that contains the wages is postmarked with a date that is no more than one day after the day on which the employer separates the employee from payroll; or

-Within 24 hours after the employer separates the employee from payroll, the employer:

-Initiates a direct deposit of the wages into the employee’s account; or

-Hand delivers the wages to the employee.

 

Note: The law does not change the final pay requirements when an employee resigns (quits) from employment. In such case, absent a written contract for a definite period, final wages become due and payable on the next regular payday.

 

Click here to read the text of the law.