Legal Question in Employment Law in California
Revoking Letter of Resignation
We had a key employee give us a letter of resignation with a two week notice. Due to the level of this employee, the company opted to walk him out the door on the day he gave us the letter and pay him for an additional week. We made sure this employee received his check prior to the Friday of that week - did the company break any laws?
4 Answers from Attorneys
Re: Revoking Letter of Resignation
If you terminate an employee (as your company did) the Labor Code provides that all earned wages are immediately due. For every day that the pay was late, you owe him another day's pay. There are exceptions for union employees or other collectively-bargained-for employment terms.
Re: Revoking Letter of Resignation
Don't forget to change the locks and make the timely COBRA notification.
Re: Revoking Letter of Resignation
The employee was entitled to receive his pay at the time you "walked him out".
When the employee gave the company the two week notice the timing requirement for final pay was a little different than immediate, however, since the company accellerated the time, this made all earned but unpaid wages immediately due.
Additionally, if the position included commission, insurance or a cafeteria/retirement plan, the transfer of these will also have date requirements of which you should be aware.
If you would like to discuss this issue further, please feel free to contact me at (626) 578-0708 or visit online at www.RulesofEmployment.com
Re: Revoking Letter of Resignation
He/she could argue you fired them, unless you paid them to end of two weeks. If you did terminate the employment, payment was to be given as you walked him/her out the door. If quit, you have 72 hours to pay salary. You did pay it, so any problem may be minimal at this time, if a problem exists. Not know till action filed or complaint filed.