A recent class action lawsuit against a national delivery service offers an important reminder for Connecticut manufacturers: timing matters when it comes to paying employees their final wages.
The case involves a seemingly minor issue—the company allegedly paid a terminated employee by direct deposit three days after termination rather than on the next business day.
That short delay is now the basis for a lawsuit seeking double damages, not just for one employee, but for an entire class of workers who may have experienced similar delays.
For manufacturers in Connecticut, where production schedules and workforce management present unique challenges, understanding these wage payment deadlines is essential.
A simple payroll misstep can quickly escalate into costly litigation.
Connecticut’s wage payment statute, specifically Section 31-71c of the Connecticut General Statutes, establishes clear and different deadlines depending on how the employment relationship ends.
When an employer discharges an employee—meaning the company initiates the termination—the employer must pay all wages owed no later than the next business day following the discharge.
This is one of the strictest timelines in the country, and it applies regardless of whether the employee worked a full shift or was terminated mid-day.
The rules differ when an employee voluntarily resigns. In those situations, the employer has until the next regular payday to issue the final paycheck.
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