HR Management & Compliance

Bill Would Ease Timing of Termination Pay Obligations




Under California
Labor Code Section 201, an employer that discharges an employee must provide the
individual’s final paycheck on the last day of work. As most employers would
attest, this requirement  can make for a
sticky situation if, for instance, the termination occurs after regular
business hours or even over the weekend, and your payroll department isn’t open
to cut the check. A measure pending in the California Senate would offer
employers some relief in this type of situation.

 

The bill, S.B. 1283,
would provide that if the employer’s accounting unit responsible for drawing payroll
checks isn’t regularly scheduled to be operating at the time an employee is
discharged, the employer could pay the employee no later than six hours after
the start of the accounting unit’s next regular workday. If the accounting unit
is located off the worksite, the employer could deliver the final wages up to
24 hours after the start of the unit’s next regular workday.

 

We’ll keep you posted on the status of this and other
wage and hour measures of interest to California
employers

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