This article addresses specific compliance issues and certain key documents for terminating employees in the State of New York. If you'd like to know how to terminate an employee within Justworks, please visit Terminating Employees.
New York law requires that employees be paid their owed wages by the next regularly scheduled payday for the pay period worked. This applies to both voluntary and involuntary terminations, with or without notice. If requested, the employer must mail the final wages to the employee’s designated address.
Whether an employer must pay for unused time depends upon the terms of the vacation and/or resignation policy. An agreement to give benefits or wage supplements, like vacation, can specify that employees lose accrued benefits under certain conditions. To be valid, the employer must have told employees, in writing, of the conditions that nullify the benefit. If an employee has earned vacation time and the employer has no written forfeit policy, then the employer must pay the employee for the accrued vacation.
New York requires employers to provide a written termination letter to employees, regardless of whether the employee’s termination was voluntary or involuntary. The letter must state the date of termination of employment, and the date of termination of benefits. This letter must be provided within 5 working days after the employment relationship has ended. Additionally, employees who are terminated voluntarily or involuntarily are also required to be provided with the NY DOL Record of Employment upon termination. Administrators can find this document directly in their Justworks account, under HR > Documents > Compliance documents.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.