You’re Fired: How to Pay Final Wages to Terminated Employees

Employers must have established payroll processes in place to ensure compliance with state laws regulating payment upon termination of employment, two industry experts said May 9.

Most states have laws requiring employers to pay employees within a certain time frame after their employment is terminated, said Kevin Valuet, Director of Payroll Training for PayrollOrg. However, most states make a distinction between voluntary and involuntary termination of employment, and different requirements apply for each.

A few states determine the deadline for final wage payments based on whether employees provide notification of their employment termination in advance to employers, he added. Other ...