Employment Q & A: The Final Paycheck

- When are wages due if an employee quits, is laid off or is discharged?
- Generally, under Ohio Rev. Code Ann. § 4113.15, an employer must issue a final paycheck to a terminated employee on the next regularly scheduled pay date, or within fifteen (15) days, whichever is earlier. Likewise, pursuant to Ohio Rev. Code Ann. § 4113.15, an employee who quits his or her job is entitled to receive his or her final paycheck on or before the next regularly scheduled pay date.
When and whether bonus or commission payments are due depends on the employer’s agreements, commission plans and/or other policies. Employers in Ohio can limit commission to those earned while employed, and thus a sales representative would not be entitled to commissions for sales that closed after his or her termination. Padula v. Wagner, 2015-Ohio-2374. All commissions or bonuses earned prior to termination would be due within the normal time period in which such payments are made.
An employer can deduct from the employee’s final paycheck for loans, theft or damage to property if it has the employee’s signed authorization to do so.
Vacation or other types of paid time off must be paid unless the employer has a policy stating that such unused time is not paid upon termination.
Should you have any questions regarding final paychecks or wage and hour law in general, please do not hesitate to contact me at 216-447-1551.