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Consider paying a little extra on termination

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in Compensation and Benefits,Firing,Human Resources

Do you think you may have slightly underpaid an employee who is being terminated? Paying her a little extra as she heads out the door may fix that problem without penalty, based on California wage payment rules.

Recent case: When Sarah was terminated, she received a check for her final wages. But she left work that day a half hour after her regular quit time. The next day, the employer gave her an additional $1,200, writing that this represented 80 hours of work, more than it believed she would have been owed for any additional hours worked.

She sued anyway, claiming she was owed more overtime.

The court calculated what was due and found that the second payment more than compensated her. It dismissed the case without penalties. (McKinney v. Primary Care, Court of Appeal of California, 2017)

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