The right of a discharged employee to be compensated is generally governed by state and federal wage payment statutes, which consistently provide that upon discharge of an employee, the employee's earned wages are due and payable immediately, or within a specified period not later than the next regular payday. With the principles of at-will employment in mind, an employer must look to statutory authority to determine its obligations with respect to wages owed to discharged employees. Wage payment and collection laws cover a broad range of issues, including the time at which wage payments must be made, and garnishments with respect to such payments.
Wage payment laws often address the payment of accrued wages and commissions at the time of a discharge or other separation from employment. In many states, these laws affect vacation pay, severance pay, and other compensation arrangements. Some states expressly forbid employers and employees from attempting to modify statutory authority through written or oral agreements. Moreover, statutory authority could override any contrary agreement between employers and employees, unless the state law expressly permits the formation of such agreements.
LEGAL CONSIDERATIONS PRIOR TO TERMINATION
When attempting to determine an employer's obligation following termination of an employment relationship, it is absolutely imperative to examine:
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Applicable State & Federal abor Laws; |
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Applicable State & Federal Industry Regulations; |
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The Employment Agreement; |
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Prior or Subsequent Representations Made to the Employee; |
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Industry Standards; and Company Policies. |
Employee discharge is a highly regulated and hot topic in employment law. Utilizing the many resources available to employers to manage this sometimes arduous but always necessary area of human resources management will assist employers in defending and, most importantly, preventing termination-based litigation. If you require assistance with any of these topics, please contact us.
To speak to an employment attorney about your rights or obligations following employment termination, please contact us here or call 713.650.9700.