SALARY WARRANTS - EMPLOYEE SEPARATIONS - 8580.4

Agencies/departments are responsible for ensuring that payments to separating employees are in accordance with Labor Code sections 201 and 202.

When an employee is separating, wages earned and unpaid are due immediately at the time of discharge. When an employee resigns from employment (i.e., employee-initiated) without prior notice, wages earned and unpaid are due within 72 hours of discharge.

Salary warrants will not be distributed to separating employees until the agency/department has verified that all amounts due to the state have been paid (cleared). The verification must be provided by staff who process revolving fund advances. See SAM section 8595.

It is recommended that a checkout list acknowledging the return of state-owned items such as credit cards, keys, state records, and equipment be completed for separating employees prior to the release of the final warrant. The checkout list may also include the verification from the staff who process employee accounts receivable and revolving fund advances that there are no outstanding amounts owed.

Government Code section 19838 (b) and (c) authorizes the state to withhold any amounts owed the state from an employee’s final separation pay.

If, after the checkout process, the separating employee leaves owing the agency/department money, it is the responsibility of the agency/department to pursue collections as described in SAM section 8776.6.