Keeping up with Compliance!

Mar 31st, 2022

Keeping up with Compliance!

In 2022, the challenges of HR compliance are endless. If you are in a position of mitigating Human Resources related risk within your organization, you may feel as if compliance-related reading, research, webinars, and execution of said compliance are endless. You are not alone! However, with the new, we cannot forget the old! Below is a reminder of state-specific compliance requirements amongst particular states. Please note, this is a sampling and not comprehensive of all US compliance requirements.

Final Pay Laws

If you are a multi-state employer, paying wages, specifically final pay wages, can be a commonly overlooked area. Some states require payment to be made immediately, other states require payment to be made within a day to several days, and other states require payment to issue no later than the next regularly scheduled pay date. Vermont and Texas are examples of states where several days are allowed if the employee is fired, three days is the maximum in Vermont, and six days for Texas.

California final pay laws require an employer who involuntarily discharges an employee to pay all final wages immediately. This means that on the day of the involuntary termination, final wages must be paid to the employee! This requires the employer and manager to prep ahead for any involuntary terminations. As for California voluntary terminations (resignations), an employee who quits without giving prior notice, must be paid his or her wages within 72 hours. If the employee gives at least 72 hours’ notice of his or her intention to quit, those wages must be paid at the time of quitting (i.e., last day of work).

Furthermore, employers may not withhold a worker’s final paycheck, even if a worker is involuntarily terminated. Have you ever heard a manager say, “We didn’t receive our laptop back; therefore, we are not giving the employee their final paycheck until we get it back!”? Withholding an employee’s paycheck is a violation of federal law; therefore, illegal. Workers must be paid for all time worked!

New Hire Notices

If you are a multi-state employer, required new hire documents do vary from state to state. This means an offer letter, I-9, and W-4 may not suffice depending on the state! For example, the Wage Theft Prevention Act is a New York State law passed in 2010 which took effect in April of 2011. It was designed to give workers more protection in New York State. It requires you as the employer to give written notice of wage rates and related information to each new hire. New York provides a Wage Theft Prevention Fact Sheet with additional details.

Similarly, California must comply with the Wage Theft Protection Act. The act requires that all employers provide each employee with a written notice containing specified information at the time of hire. Notices need to be given in the language the employer normally uses to communicate employment-related information to the employee. Click Here for direct information from the California Department of Industrial Relations.

Exit Documentation

As an employer, you know that separating from an employee can be one of the toughest parts of the job. HR compliance adds an extra challenge with the addition of specific, required separation notices upon an employee’s departure.

In Georgia, the form DOL-800 must be delivered to the employee, signed and dated, on an employee’s last day of work. If this isn’t possible, it should be mailed to their last known address within three days. This form is required because in Georgia, employment and earnings information is necessary to make unemployment benefit determinations

In California (are you seeing a trend?), all employees who are discharged, laid off, or have a similar change in their employment status must be given Notice to Employee as to Change in Relationship, along with the unemployment benefits pamphlet, For Your Benefit, DE 2320, no later than the effective date of the discharge or layoff.

We understand the world of compliance can be difficult to monitor and manage. If you need assistance with compliance requirements, The O’Connor Group can help!