Timeframe of Final Check

[gryndor]

What is the name of your state (only U.S. law)? AZ

Brief Backstory: I voluntarily separated from an Arizona company to move to CA, to get away from a stalker.

My termination date was 8/21/12, and our paydate after my termination date was 9/4/12. From what I understand, since I left, my final wages were due to me on our next regular pay date of 9/4. On 9/5, I called the company and my previous manager was very clipped and unhelpful, but she did say that they had mailed off my check the day before.

(Because of the Labor Day holiday, company policy is to complete payroll in advance, and so everyone else was paid out on 8/31)

So now, it is 3 days past payday, and I have no check, and no one at my old company sees fit to call me back. I am researching the Federal Laws and AZ DOL and they are saying that it is the company's responsibility to make sure my check is in my hands on the pay date.

What are your thoughts on the matter? Is this a non-issue or is there something I can say to motivate compliance?

Gryn

 

[OHRoadwarrior]

AZ law says they are to pay an employee who quit, on their regular final pay date. Why weren't you there to get your check? You knew it would be waiting. Compliance to what, you were not there to get your check. Did you expect them to send it to CA via special messenger, so it would be in your hands on payday?

 

[gryndor]

I moved to CA in kind of a rush... the whole stalker thing. And I was assured that it would be direct deposit just like every single other payday. I'm not a princess waiting for my check on a silver platter, I just was expecting a direct deposit because I'd never rescinded my authorization and had specifically requested it DD, since I knew I was driving 865 miles away.

 

[OHRoadwarrior]

If it was mailed. It was likely mailed on Tuesday, was at the local AZ PO, on Tuesday night. Made the regional PO on Weds for sorting. Assuming it was not additionally held up due to your address change.

 

[cbg]

The law will consider that it was in your hands on a timely basis as long as it was mailed to your last known address on the pay date. They are NOT required to do a special pay run and take extraordinary steps to see that someone who moved out of state (regardless of the reason) does not experience any delay.

ETA: There is at least one state where the law prohibits the final check being done by direct deposit. I don't know offhand whether AZ has the same law but it's not outside the realm of possibility.

 

[swalsh411]

ETA: There is at least one state where the law prohibits the final check being done by direct deposit. I don't know offhand whether AZ has the same law but it's not outside the realm of possibility.

I have never heard of such a law nor can I fathom why one would be passed. If anything you want to encourage direct deposit (or wire) of final check so there is no back and forth about where the paper check is.

 

[OHRoadwarrior]

I have never heard of such a law nor can I fathom why one would be passed. If anything you want to encourage direct deposit (or wire) of final check so there is no back and forth about where the paper check is.

I disagree. Companies that use direct deposit, followup with a written copy, supplied to employee at work. If OP is no longer working there, they are not able to provide this statement via normal channels.

 

[cbg]

I have never heard of such a law nor can I fathom why one would be passed. If anything you want to encourage direct deposit (or wire) of final check so there is no back and forth about where the paper check is.

Well, now you've heard of it. How about that - you've learned something today.

http://www.dir.ca.gov/dlse/FAQ_Paydays.htm

 

[BigMouthWino]

Furthermore it is many companies internal policy not to issue a final check via direct deposit. I also know that the payroll provider Paychex advises all of its employer clients not to issue a final check via direct deposit. The reasoning is that there are often disputes when the employee receives their final check and fixing a direct deposit is a lot more difficult than voiding a paper check and having a new one issued.

 

[swalsh411]

Furthermore it is many companies internal policy not to issue a final check via direct deposit. I also know that the payroll provider Paychex advises all of its employer clients not to issue a final check via direct deposit. The reasoning is that there are often disputes when the employee receives their final check and fixing a direct deposit is a lot more difficult than voiding a paper check and having a new one issued.

So then don't make a mistake on the final check.

Well, now you've heard of it. How about that - you've learned something today.

http://www.dir.ca.gov/dlse/FAQ_Paydays.htm

It doesn't mandate a live check in all cases. It says you can pay by direct deposit if the employee agrees to it.

I disagree. Companies that use direct deposit, followup with a written copy, supplied to employee at work. If OP is no longer working there, they are not able to provide this statement via normal channels.

Perhaps you have heard of "online pay stubs". According to the American Payroll Association, less than 15% of employers with 250 or more employees distribute paper pay stubs. And even if you still use paper advice slips, you can just mail it. There is no requirement in any State that an employee receive their pay stub within X days of termination. The law is concerned just with the constructive receipt of payment.

 

[cbg]

And I will acknowledge that our OP, whom I will remind you is in a different state and we have not confirmed whether such a law exists in her state, did agree to it.

However, the intent of the CA law is clear, and the intent is for direct deposit to be immediately cancelled. They will permit exceptions if the employee agrees. The STANDARD is for the termination of DD.

 

[ecmst12]

I don't get paper pay stubs. I have to get them from my payroll web site.

 

[cbg]

I get both.

 

[BigMouthWino]

So then don't make a mistake on the final check.

That is obviously the goal whether the check is paper or DD. The problem is with the final check there are more opportunities for error. How much time in the pay period did the employee actually work? How much vacation or PTO must be paid? Any final commissions to be calculated? What is to be withheld for health insurance (is the employee electing COBRA)? And so on.

If there is an error and the ex-employee has to wait for a new paper check to be cut to get their money it keeps their attitude a lot more compliant than if they already have money in their bank account. And God forbid if a keystroke is missed and they're accidentally OVERPAID.