August 06, 2013

1. Has a checklist been prepared of what the employee needs to return to the employer (e.g. keys, passcards, confidential files, laptops, and other company materials that must be returned.)

2. Has the employer prepared a final paycheck? Have any other amounts, such as accrued but unused vacation pay, been taken into account?

• Check all applicable state and/or local laws. For example, Massachusetts requires the following:
  • employers must pay a separated employee all wages owed including any and all accrued, but unused vacation time.
  • If the termination is voluntary, final wages accrued through the date of termination must be paid on the next regular payday, or in the absence of a regular pay day, on the following Saturday.
  • If the termination is involuntary, employers must pay all wages on the date of discharge.

3. What about restrictive covenants and other post-employment obligations (e.g., a noncompete, nonsolicit, or confidentiality agreement/obligation?)?

4. Make arrangements to have the employee’s password and computer access terminated immediately, and identify and discontinue any other security privileges, such as company credit cards or business accounts to which the employee may have had access.

5. Consider what position the employer will take with respect to unemployment compensation claims?

6. What will be said with respect to references?

7. What, if anything, will be said to other employees following the management action?

8. Prepare all required notices (e.g. COBRA).

9. Check any other state-specific requirements which may apply.

Author:

Anne Ladov Eisemann, Esq. Jackson Lewis, LLP

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