Employers are not required by federal law to give a former employee his or her final paycheck immediately. Also, an employer is not required to pay an exempt employee his or her full salary in the terminal week of employment. Some states, however, may require immediate payment or payment at another specified time. Under state law, requirements regarding timing of the final paycheck may depend on whether an employee is terminated or voluntarily quits. Here are the final paycheck requirements in New York.
If the Employee is Involuntarily Terminated
The final paycheck is due by the next regular payday. If the employee so requests, the wages must be mailed.
If the Employee Quits
The final paycheck is due by the next regular payday. If the employee so requests, the wages must be mailed.
Payment of Unused Benefits on Termination
Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. New York courts have held that an agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit.
More information regarding final paycheck requirements and payment of unused benefits on termination is available from the State of New York.
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Source: “Final Paycheck Requirements in New York (NY)” by Zywave