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When Do Employers Owe Final Pay for Employees Who Give Notice of Resignation?

Posted Monday, May 22, 2017 8:00 am
Hawaii law requires employers to pay employees who give "at least one pay period's notice" their final wages on their last day of employment.  The question is what constitutes "one pay period's notice" and how do employers know if an employee has provided it?  Some employers have interpreted the term to mean that an employee must give an equivalent number of days' notice as that which exists within the employer's pay period (i.e., fourteen days' notice if an employer has biweekly pay periods).  But the Department of Labor and Industrial Relations (DLIR) has taken a different position for enforcement purposes.
 
According to the DLIR, to receive final pay on an employee's last day of work, s/he must give notice before the beginning of the pay period that precedes the quit date.  For example, assume that an employer has the following biweekly pay periods:
 
5/28/17 to 6/11/17
6/12/17 to 6/25/17
 
If an employee gives notice that his last day of work will be June 21, he will not be entitled to receive his final pay on that date unless he gives notice before May 28, which is the beginning of the pay period that precedes the June 21 quit date.  If an employee does not give notice until June 7 (i.e., fourteen days before his quit date), his employer would not be required to provide his final pay until the regular payday after the 6/12 to 6/25 pay period.
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