After an employee has left your company, he or she is entitled to receive their last paycheck with wages earned during their final pay period regardless of whether the employee decided to leave for other opportunities, or the employee was fired.
Whether your employee is required by law to receive their final paycheck on their last day of employment or within a specified time frame varies from state to state.
To find out which states are bound by specific payment window deadlines, check the United States Department of Labor.
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It is important to know the requirements within your state, as your business may be held liable if a former employee chooses to file a complaint about a missing final paycheck.
A good strategy is to have a policy in place that mandates that final paychecks be issued on the last day of employment if at all possible, even if your state has a more lenient deadline. It is also a good idea to have checks mailed or direct deposited into an employee’s bank account. In situations where the reason for leaving was contentious, this will negate the need for a disgruntled employee to return to the workplace.
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