Best Practice Tips For Separation Of Employment | SMALL BUSINESS
for each day that an employer fails to appropriately pay an employee’s unpaid wages and benefits upon separation, the employer may be subject to civil and criminal penalties the employee. After separation, such accrued vacation time is considered unpaid wages that become payable in full or on a prorated basis with all other unpaid wages due on the next regular payday. •
Sick time and personal time: Under Rhode Island law, employers are not typically required to pay separating employees for any accrued but unused sick or personal time. Rather, employers should apply company policies concerning this time.
TERMINATION OF BENEFITS
Prior to separation, employers should clearly communicate information to the separating employee about the termination of the employee’s benefits, including health insurance, life/ disability insurance, and retirement benefits. To the extent that the employee may be entitled to COBRA to continue his/her health insurance coverage, employers should work with the employee to provide any information the employee may need.
REFERENCES
Employers should create and implement a policy concerning the information it provides when a third-party requests information about a former (or current) employee. Typically, employers should not release any information about a former employee, other than confirming dates of employment, without an authorization from the former employee permitting the employer to do so. If an employer releases information without the employee’s consent, the employer could be subject to claims of breach of privacy or defamation, especially to the extent that the information provided may not reflect entirely favorably on the former employee.
RETURN OF PROPERTY
Prior to the employee’s final separation from employment, employers should ensure that all company property (particularly any sensitive documents, electronics, and/or keys) has been returned to the employer and that all of the employee’s personal property has been returned to him or her. Employers should consider having the employee sign a form acknowledging that all property has been returned to its rightful owner. Matthew R. Plain, Esq. Partner, Barton Gilman LLP
Kristen M. Whittle, Esq. Associate, Barton Gilman LLP
THIS IS YOUR HEALTH BENEFITS EXCHANGE. YOU SHOULD KNOW HOW IT’S GOING. Be a part of Year Two. Buy your health insurance through HealthSource RI. 1.855.840.HSRI HealthSourceRI.com HealthSource RI is the official healthcare portal for the state of Rhode Island. Copyright ® HealthSource RI logo is the trademark and service mark of HealthSource RI.
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