Can a Company Withhold My Last Paycheck If I Resign?
- State law usually gives your employer a bit more time to issue the final paycheck when you quit than if you were fired. The length of time an employer has to issue a final paycheck after resignation varies. In Hawaii, the employer must pay you immediately if you give notice of at least one pay period; in most states, you must be paid on the next scheduled payday, according to Nolo.
- The employer has to include pay for every hour worked until you resign and usually any accrued vacation pay or paid time off. State laws differ wildly on when -- or even if -- an employer has to pay accrued vacation time. Severance pay, however, is almost always an agreement between an employer and the employee's union. Whether severance must be included in your final paycheck depends on the provisions of your union's collective bargaining agreement.
- The cost to the employer for violating final paycheck statutes depends in part on how you pursue the matter. If you file a lawsuit, the employer must reimburse your legal and attorney's costs, will possibly incur a fine it must pay the state and must pay interest on the wages. Fines and penalties apply whether or not the employer knowingly violates the law.
- Take action as soon as your employer violates final paycheck time limits, because the statute of limitations on collecting final wages could be less than a year in some states. Talk to your employer first about the back wages and then file a complaint with your state's labor board if necessary. Also, contact your union's local representative if you have one.
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Penalties for Late Payment
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