From the course: Human Resources: Payroll

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Termination of employment and final checks

Termination of employment and final checks

From the course: Human Resources: Payroll

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Termination of employment and final checks

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- So, what happens when a worker is terminated? Well, there are many tasks that must be completed and processing the final paycheck is one of the most important tasks. The final paycheck should include pay for all time worked and non-exempt employees must be paid at least minimum wage for all regular hours worked. Final paychecks should not take out any extra deductions for discipline or any property violations. The Fair Labor Standards Act does however, allow for companies to prorate an exempt employees final paycheck and only cover days worked, allowing for a partial pay week. Timing is extremely important and some States charge wait time penalties if the final pay is delayed. Some State regulations may be more strict than Federal Laws. So for example, California is one of the strictest States in the US when it comes to final payment rules. A final check must be given upon termination if fired or within 72 hours if the…

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