Whenever a company decides to terminate an employee, it is a good idea to consult an attorney to be certain the company is in compliance with all applicable state and federal laws, as well as company policies and handbooks. Most employees are employed “at will.” While this means their employment may be terminated for no reason, they still may not be terminated for the wrong reason. We leave for another time a discussion of the wrong reasons for termination of employment, but strongly advise you before terminating this employee, to be certain the types of complaints she is making are not protected by law.

 

      With respect to your obligation with respect to a terminated employee’s last paycheck, the law generally requires the discharged employee’s wages to be paid in full at the next regular designated payday for the pay period in which she performed the work for which she is being paid. The former employee may be paid through your regular pay channels, unless she requests that you send her paycheck by certified mail, postmarked within the deadline for payment.

 

      As her employer, you may be entitled to offset certain amounts allowed by law, including any money over which a bona fide disagreement exists as to whether the wages are owed. The “bona fide disagreement” must be based on an honest and sincere belief the employee is not owed the funds, based on a factual or legal dispute. You must be able to support your position with relevant evidence.

 

      If an employer fails to pay wages on time, the employer is also liable to the employee for liquidated damages. These damages equal two percent of the unpaid wages for each day the employee was entitled to be paid, up to an amount equal to the unpaid wages. This penalty applies if the employer willfully withholds wages over which there was no bona fide disagreement. If the employer files a petition for bankruptcy, the penalty does not apply after the date of the filing of the petition, if the employer is thereafter adjudicated bankrupt.