Employment Law FAQs

Under the Family and Medical Leave Act, when may an employer refuse to allow an employee to take family or medical related leave or refuse to reinstate an employee after such leave?

Are there any rules about when I have to give workers their final paychecks?

Yes. Most states have laws requiring employers to give employees their final paychecks very soon after termination -- sometimes on their last day of work. This may mean that you cannot wait for your usual payroll process to issue the final check. In some states, these deadlines depend on whether the employee was fired or quit.

Am I legally required to pay severance to workers when they leave?

Probably not. Unless you lead your employees to believe that they are entitled to severance (through language in an employment contract, employee handbook, or oral promise, or by routinely paying severance to departing employees), you are under no obligation.

However, many employers customarily offer severance pay to all long-term employees. A severance package helps ease the burden of being fired and may help the employee transition to a new job. A severance package may also help soothe the bad feelings of a fired employee. Not only will this ease your conscience when you have to fire employees, it will also make lawsuits from former employees less likely. After all, a former employee who has been rewarded for prior service to the company may not be particularly motivated to sue.

Is there anything I can do to protect myself from lawsuits by former employees?

Yes. You can ask the employee to sign a release -- an agreement not to sue you for being fired -- in exchange for certain benefits. Some employers routinely ask employees to sign a release as a condition of receiving a severance package.

If you decide to seek a release from a departing employee, you will probably need the help of a lawyer. In some states, a release must contain specific language or a court will not honor it. And you will want to tailor the release to meet the needs of your company and the particulars of the employment situation.

DISCLAIMER: This site and any information contained herein are intended for informational purposes only and should not be construed as legal advice. Seek competent legal counsel for advice on any legal matter.

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