Does An Employer Have To Pay You After Termination In Michigan
When your employer terminates your employment or you suddenly resign from your position, you may wonder when you might receive a final paycheck for the wages and pay you earned before the end of your employment. Does your employer have to pay you after terminating your employment? How long do they have to send your final paycheck?
State and federal laws govern final pay after termination of employment, and violations of these laws may give workers a legal claim against their former employers.
Understanding Michigan’s Wage and Hour Laws
Michigan’s wage and hour laws govern how employers must pay final wages to employees after resignation or termination. When an employee voluntarily leaves employment, the employer must pay all wages earned as soon as the employer can determine the amount due to the employee. However, for employees engaged in hand harvesting of crops, employers must pay final wages within three days after the employee’s voluntary resignation.
When an employer discharges or terminates an employee, they must pay all wages earned or due to the employee as soon as the employer can determine the amount due with due diligence. Ideally, an employee should receive their final paycheck by the next regularly scheduled payday after the effective date of their resignation or termination.
However, these rules do not apply to an employee working under an employment contract who voluntarily leaves employment or has their employment terminated if the employer cannot determine the amount due until after the termination of the employment contract. In such a case, the employer must pay the estimated amount of pay due as soon as practicable, with the final payment made in full after termination of the contract.
What Should a Final Paycheck Include?
An employee’s final paycheck should include their regular pay earned up until their last day of work and any additional compensation earned before the termination of their employment, including:
- Overtime pay
- Commissions
- Bonuses
- Accrued sick and vacation pay
Legal Options When an Employer Does Not Pay You After Termination
If your employer does not promptly pay you after your resignation or termination, an employment law attorney can help you pursue your legal options for seeking compensation. In Michigan, an employee who has not received a final paycheck after termination can file a complaint with the Michigan Department of Labor and Economic Growth’s Wage and Hour Division or the U.S. Department of Labor’s Wage and Hour Division. Alternatively, they may file a lawsuit within two years for violations of federal wage and hour laws (or three years for willful violations), or within 12 months for violations of Michigan wage and hour laws.
Contact a Wage and Hour Law Attorney Today
If you’re facing challenges getting paid following a resignation or termination, you may need legal assistance to demand your hard-earned pay. Contact Just Right Law today for a free, confidential consultation with our legal team to discuss your options for securing final compensation after the end of your employment.