Final Paychecks

Payroll Information

Final Paychecks

The law is very clear regarding payment of final wages. Therefore, it is imperative that Human Resources be notified immediately when an employee has terminated.

The following is a general summary of the Wage and Hour Laws as they relate to final paychecks:

When Employee Quits Without Notice

The final paycheck is due with five (5) days, excluding Saturdays, Sundays and holidays. Exception: If a regular payday occurs within the five (5)-day period, the employee must receive all wages at that time.
ORS 652.140(2)

When Employee Has Given Notice

When at least 48 hours of notice is given, excluding Saturdays, Sundays and holidays, the paycheck is due on the final day worked. If the final day worked falls on a Saturday, Sunday or holiday, the paycheck is due not later than the end of the next business day. ORS 652.140(2)(3) For final paycheck purposes, the bureau (Bureau of Labor and Industries) defines "business day" as Monday through Friday, excluding state holidays, during the hours business operations of the employer are conducted. OAR 839-001-410

When Employer Terminates Employee, or if Termination Is by Mutual Agreement

The final paycheck must be paid not later than the end of the first business day after the termination. ORS 652.140(1)

Layoff

If an employee is laid off and will return at a later date, the final paycheck may be paid on the next regular payday. If there is no reasonable expectation that an employee will return to work, the layoff is a termination. If the employee is laid off and the employee returns to work within 35 days, the layoff is not a termination. OAR 839-001-430

Final Payment Must Be Without Condition

If a dispute arises over the amount of final wages due an employee, the employer is to pay all the money the employer agrees is due, and to pay that sum without setting any conditions upon the payment. The employee retains the right to claim any balance the employee alleges is due through union grievance procedures (if applicable), or by filing an action with the court or a claim with the Bureau of Labor and Industries. ORS 652.160

Penalty Wages for Withholding Final Paycheck

Any employer who willfully withholds any portion of an employee's final wages is liable for additional wages for every day the employee remains unpaid up to a maximum of 30 days. The penalty for each day is calculated at eight (8) times the employee's hourly rate. ORS 652.150

Completed Personnel Action Forms Due

Due in Human Resources with the time sheet (if applicable) by the day before the college is required to pay the employee.