Withholding an Employee’s Last Paycheck is Not Compliant in Business and at Work

As I prepared a client’s new (and compliant) handbook this week, I reviewed their old handbook for any policies unique to the organization that I could add to the new handbook.

There was one policy that I will not add: withholding a employee’s last paycheck upon separation of employment until all company property is returned. It’s not compliant to withhold a separated employee’s final paycheck for any reason.

As outlined in Section 191 of NYS Labor Law:

When are employers required to pay employees whose employment has ended due to termination, retirement, or resignation?

Employees whose employment has ended are entitled to be paid no later than the pay day on which their next pay would have been due had they still been employed. Upon request of the employee, employers are required to mail the employee his or her wages. Nothing in the Labor Law prevents an employer from paying a terminated employee their wages at:

 The time of termination

 Some other time before the payday on which the wages would have been due.

Do you pay ex-employees their final (and full) paycheck for all time worked no later than when the next pay would have been due had they still been employed, in business and at work?