When does the final paycheck need to be paid? What can I withhold from the final paycheck? Can I hold the check until I receive company items back from the employee? Can the final check be direct deposited? Of all the human resource questions I answer these are the ones I get the most. The Oregon rules for the final paycheck are easy to follow and very detailed.
When does the final paycheck need to be paid? The answer to this question depends on the circumstances surrounding the employees exit.
- If employee quits with less than 48 hours notice, excluding holidays and weekends, the final paycheck is due within five business days.
- If an employee quits with at least 48 hours notice, the final paycheck is due on the final day worked.
- If an employee is terminated the final paycheck is due no later than the end of the next business day. We recommend that you have the final check in the termination meeting and review it with the employee and have them sign off that it is all wages owed to them.
What can I withhold from the final paycheck? You can only withhold items that are legally allowed by law. For example, taxes, health insurance premiums, retirement plan deferrals.
Can I hold the check until I receive company items back from the employee? As difficult as it is the answer to this question is absolutely not. You are required to pay the employee for all hours worked and get the check to them based on the above schedule regardless of what company property they have. You also cannot deduct any amounts to reimburse for company property not returned.
Can the final check be direct deposited? You should only direct deposit the final check if you have authorization from the employee to do so.
For information on Oregon Wage and Hour Law visit their website http://www.oregon.gov/BOLI/TA/pages/t_faq_tafaq.aspx.
If you have any questions regarding final paychecks or other HR related items, we encourage you to contact our office.