Whether it’s amicable or not, after an employee leaves, there can be questions that arise. These questions can be particularly sensitive when they’re centered around the payment of wages or compensation.
New York Labor Law section 191 answers these questions. Whether an employee leaves on their own or is terminated, they’re entitled to have their outstanding compensation paid to them no later than their next regular payday – even if they’re gone!
What does that mean in reality? Well, to avoid legal issues, there shouldn’t be a delay in getting them paid. That’s true even if they left under less-than-ideal circumstances. And while typically a final paycheck is paid in the same manner as all other paychecks, the former employee has the right to request their paycheck be sent via the mail instead.
In the case of a sales commissions, a salesperson must be paid all earned commission within five business days of termination or within five business days after the commission becomes due, if it’s not yet due as of the date of termination.
These can be thorny issues for your business, and national payroll companies don’t always have the skinny on the nuances of New York law.
At the Coppola Firm, we know employment law. Feel free to reach out at firstname.lastname@example.org or 716.839.9700 if you have questions you need answered.