Employee terminations and resignations must be planned for in advance to avoid common pitfalls for California employers. This Friday’s Five focuses on critical management and legal considerations during the separation process to minimize potential liability:

1. Documenting the reason for termination

What is the reason for termination? Is there a company policy that was violated? [Note: Is the company policy in writing? Has it been distributed to the employee? Is there a signed acknowledgement of the policy in the employee’s file?] Who was involved in termination decision? Review documentation for termination if “for cause” and ensure this documentation is maintained in the employee’s personnel file.

2. Final pay and accounting

Employers need to prepare the employee’s final paycheck and ensure that any unused accrued vacation time is also included.

Final wages must be paid within certain time limits, including the following:

1. An employee who is discharged must be paid all of his or her wages, including accrued vacation, immediately at the time of termination.
2. An employee who gives at least 72 hours prior notice of quitting, and quits on the day given in the notice, must be paid all earned wages, including accrued vacation, at the time of quitting.
3. An employee who quits without giving 72 hours prior notice must be paid all wages, including accrued vacation, within 72 hours of quitting.
4. An employee who quits without giving 72-hours’ notice can request their final wage...

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