Terminating California Employees and Issuing Final Checks

 

Final Paycheck

 

Employees who are discharged must be paid all of his or her wages at the time of discharge.

 

Employees providing 72 hours notice or more must be paid all of his or her final wages at the end of their final scheduled shift.

 

Employees providing less than 72 hours notice must be paid his or her final wages within 72 hours after notice is given.

 

Also included in final pay is any accrued vacation and earned commissions.  It does not include any employee reimbursements.  Employee reimbursements can be made according to the company’s standard schedule.

 

Final Payments by direct deposit are not permitted unless reauthorized by your employee in writing.

 

It is unlawful to hold an employee’s paycheck until an employee returns equipment or tools, or repays loans, etc.

 

Paychecks are to remain at the employer’s principal place of business for pickup unless the employee specifically requests the paycheck should be mailed.

 

If employee is discharged when the employee arrives for his or her normal shift, the employee must still be paid 1/2 of the scheduled shift or two hours, whichever is greater.

 

 

Employee Separation Package

 

Be sure that your final package includes the following:

 

California pamphlet DE 2320 “California’s Program for the Unemployed”Click here for an electronic copy for immediate distribution.

 

Employee Termination NoticeWe have created a sample you can use.

 

Final Paycheck

 

Health Insurance Premium (HIPP) NoticeClick here for an electronic copy.

 

Cobra Continuation Letter (For Employers offering health insurance with more than 20 full time employees)

 

If you have any questions or require assistance with completing the termination paperwork, contact Mosaic Business Services.  (805) 545-7798

 

 

Our Secure Payroll Options

We offer several different ways to submit your payroll to our office for processing.

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Our user friendly, multi-faceted approach to payroll gives you as much or as little control as want. Freeing up time for you to focus on your business instead of worrying about the details of payroll.

 

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