In California, employers, including hotels, are required by law to provide terminated employees with their final paycheck on their last day of work. If the employee did not provide at least 72 hours' notice prior to leaving, the employer has up to 72 hours from their last shift to issue the final paycheck. The paycheck must include all accrued and unused vacation time as well as other earned wages.
To ensure compliance and facilitate the timely processing of final paychecks, follow these steps:
Step 1: Update the Employee's Profile
- Locate the employee’s profile in the Inn-Flow system.
- Update their profile to reflect either "Hourly" or "Salary."
- Note: If the employee’s profile is set to "Exclude from Payroll," they cannot be exported for payroll processing. This setting should not occur for active or terminated employees who require final payment.
Step 2: Verify and Adjust Hours Worked
- Navigate to the "Payroll" tab in Inn-Flow.
- Locate the employee. If their hours need to be adjusted (e.g., to meet a total of 32 hours worked), update their time entries in the "Timesheets" tab to reflect the correct number of hours.
Step 3: Process the Payroll Export
- Return to the "Payroll" tab and confirm that the employee’s profile now reflects the correct hours.
- Select the checkbox next to the employee’s name to export their payroll details.
- Note: This step generates a payroll export file specifically for the selected employee.
- Send the payroll export to your Payroll Agent to process the final paycheck.
Important Notes:
- Ensure all data, including hours worked and accrued vacation time, is accurate before submitting the payroll export.
- Requests for final paycheck processing should not be sent in an incomplete format or without verifying the employee’s eligibility for export.
- Failure to comply with California labor laws regarding final paychecks can result in penalties for the employer.
By following this process, hotels can ensure compliance with California’s final paycheck laws and provide terminated employees with their rightful compensation in a timely manner.