All Topics Paychecks Operations Events Certifications

Final And Unclaimed Paychecks Laws In Delaware

>>> About Final Paychecks Laws In Delaware

State and federal law requires that employers give departing employees their final paycheck within a specified time period or - if a paycheck goes unclaimed - to follow state escheatment rules. The rules in Delaware for both are included below.

Delaware's Requirements For When To Send Final Paychecks

Delaware state law does not provide regulations on how to pay an employee's remaining pay after they leave the company. Employers are thus required by the federal Fair Labor and Standards Act (FLSA) to provide the final paycheck on the next scheduled payday, regardless of whether the employee quit or was terminated.

What Should Be Included In A Final Paycheck In Delaware

The final paycheck should contain the employee's regular wages from the most recent pay period, plus other types of compensation such as commissions, bonuses, and accrued sick and vacation pay. Employers can withhold money from the employee's last paycheck if the employee owes your organization.

Can An Employer Withhold A Final Paycheck?

Though an employer might be able to deduct the cost of the equipment from the final pay of non-exempt employees, they generally cannot withhold unpaid wages from ex-employees. Failure to follow state final paycheck laws could lead to fines and penalties, so be sure to consult with legal counsel before taking any actions to hold a final paycheck.

How To SendThe Final Paycheck

Delaware requires that final paychecks be paid on the next scheduled payday, regardless of whether the employee quit or was terminated. Because Delaware does not have specific rules on how to send a final paycheck, the final paycheck can be paid via direct deposit (if an employee previously authorized direct deposit for wages), or by check or payroll paycard, either in-person or mailed.

Note that employers generally are not obligated to pay a terminated employee via direct deposit on his or her final paycheck.

For More Info On Final Paychecks

For more about Final Paychecks, go to https://www.payrolltrainingcenter.com/payroll-requirements-for-terminated-employees-wt1000388


>>> About Unclaimed Paycheck Laws In Delaware

Believe it or not, you just can't keep a paycheck that an ex-employee doesn't take. Even if a check is abandoned, the employer has no right to void the check and keep the funds.

Technically, unclaimed paychecks are subject to 'escheat' laws as unclaimed property under the laws of the state where the employee last worked. This means that employers are required to follow their state's laws for submitting unclaimed paychecks to the state. Not doing so can subject employers to fines and penalties.

Delaware's Requirements For Unclaimed Paychecks

The following are the reporting and recordkeeping requirements for Delaware's unclaimed paycheck laws:

• Recordkeeping Requirements
  Employers must retain a record of the names and last known addresses of payees for ten years after reporting to the state
• Reporting Requirements
  Delaware employers must report and remit unclaimed wages annually. Typically, the report for unclaimed wages must be sent before Nov. 1 of each year for wages unclaimed as of June 30 of that year

With regard to recordkeeping, Delaware employers should speak with their legal counsel to determine processes and procedures re how many attempts the employer should make to contact ex-employees.

For More Info On Unclaimed Paychecks

For more about Unclaimed Paychecks, go to https://www.payrolltrainingcenter.com/rules-for-unclaimed-paychecks-wt1000338

Recommended Training Courses For Final And Unclaimed Paychecks:

• Payroll Requirements For Terminated Employees
• Legal Requirements For Unclaimed Paychecks
• Paycheck Fundamentals Training & Certification Program
• Certificate Program For Payroll Specialists