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General information, not legal or tax advice.

Prepare for immediate payment on discharge

DIR states that a discharged employee must receive all wages, including accrued vacation, immediately at termination. Arrange the payroll review before a planned discharge so the final payment does not wait for the next routine payroll cycle.

Use the resignation notice to establish timing

An employee who gives at least 72 hours’ notice and quits on the stated day must be paid at quitting. Without that notice, final wages are due within 72 hours; the employee may request mailing to a designated address. Preserve the notice and any mailing request in the separation file.

Reconcile the final wage components

Gather time through departure, unpaid earnings and the accrued vacation record. The DIR payday guidance includes accrued vacation in final wages. As a practical control, reconcile those inputs with the most recent payroll to identify items already paid and items still outstanding.

Understand the waiting-time exposure

For a willful failure to pay final wages, DIR describes a penalty based on the employee’s daily pay for each calendar day unpaid, up to 30 days. Weekends and holidays count. The daily rate includes regularly scheduled overtime, though not occasional overtime. Direct a disputed calculation to counsel promptly.

Keep delivery evidence with the payroll record

Retain the final calculation, approval and payment evidence together. Give the reviewer the actual sequence of events rather than a reconstructed summary. If there is uncertainty about a special separation situation, ask counsel to determine the rule before assuming the ordinary payroll calendar controls.

Sources: final wages

Prepare departure records before payroll is due

Tidwell helps assemble final payroll inputs and payment records under the employer’s reviewed instructions.

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