When a worker leaves their job, either voluntarily or having been fired, there are strict timelines that dictate by when that employee must receive their final paycheck. This timeline can be different depending on which of 3 categories the employee falls into. The three categories are if the employee quit with at least 48 hours notice, if the employee quit with no notice, or if the employee was terminated. Failure of the employer to abide by the appropriate timeline can result in steep penalties for the employer.
If the employee quit with at least 48 hours notice, the employer is required to give the final paycheck on the last day of employment. Note though, Saturday, Sunday, and most holidays don’t count for notice requirement.
If the employee quit without 48 hours notice, the employer either gets 5 days or until the next regular payday, whichever is shorter, to give the employee their final paycheck. Again, Saturday, Sunday, and most holidays don’t count for notice. There are some special rules if an employee left without giving a record of hours worked, but they are very fact specific and difficult to generalize. If this applies to your situation, you might want to have an attorney examine the situation to determine if the employer complied with the rules.
If the employee is terminated the employer is required to pay the final pay check no later than the next business day. Note, the rule is NOT on the next regular payday, which many employers seem to do.
Now that we know what the timelines are, the question arises what happens if the employer doesn’t comply? In general, the employer is liable and may be required to not only pay the back wages but also penalties or fines. These penalties can include penalty wages of 8 times the employee’s regular hourly wage for each day late past a certain point, and civil penalties of $1000 plus costs, interest, and fees for willful violations. It is important to note, however, that there may need to be procedural steps taken to enforce these rights and that when each penalty applies depends on numerous facts and the circumstances of each specific case.
Because what penalty applies is dependent on the situation, and there are procedural steps that must be taken to preserve these rights, any employee who believes they are owed back wages, or that wages were not paid on time might want to consult with an attorney to determine if they have a case. If you have had problems with your wages or getting paid and would like your employment situation analyzed, feel free to call the office for a free consultation.