How can an employer avoid assessment of the waiting time penalty?
Timely pay employees their final paycheck. Even if final payment is paid after the 72 hours, pay as soon as possible as the employees receipt of final payment will stop the penalty from accruing. Example 1: Employee quits on September 20th without giving 72 hours of notice and the employer does not pay him the final paycheck until September 30th when the employee picks up the check from the employers premises. Employer is liable to the employee for 7 days of penalty, rather than 10 days because the employers penalty did not start to accrue until September 23rd, 72 hours after the employees termination. Example 2: Employee quits on August 10th without giving 72 hours of notice, and the employer mails the final paycheck on August 20th, but the employee does not receive his paycheck in the mail until August 25th. Employer is liable to the employee for 12 days of penalty, rather than 7 days because the employers penalty accrues until the employee receives the paycheck. Penalty is not asses