To:              All Departments

From:          Payroll Office

Subject:       New Rules Regarding Payment of Wages at time of Separation

__________________________________________________________________ 

 

The Office of the President has advised us that certain provisions of the California Labor code now apply to the University of California.  These provisions apply to the issuance of an employee's final paycheck.  Effective immediately the following procedures must be followed in order to avoid significant penalties for failure to comply:

 

1.                 The final paycheck (including earnings to date, overtime, compensatory time, and vacation hours) must be paid to the employee at the employee's site of employment on the day of separation when:

 

            a)                 an employee is discharged;

            b)                an employee has a predetermined ending date; or

            c)                 an employee has given at least 72 hours notice of intention to quit.

 

            Note: Payment must be made via issuance of check.  Direct deposit is not an option.

 

2.                When an employee gives no notice of separation, the University has 72 hours to issue the final paycheck.  If the employee requests or agrees, the final paycheck may be mailed to an address designated by the employee.  The check should delivered by certified mail (or similar mailing method) to document the date of payment for purposes of the 72-hour rule.

 

3.        Every Department must prominently display the official University pay dates and the time and place for employees to receive payment.  The official pay dates are available at the following web address:

 

These provisions apply to all employees (faculty, staff, and students).  In order to comply, departments will need to follow the payroll processing steps listed below:

 

1.   Use Separation bundle to process the separation immediately. 

2.   Complete Payroll Adjustment Worksheet (UPAY644D) and report final regular hours including Overtime,   Compensatory time, and terminal vacation hours.  Download the Excel spreadsheet at: http://accounting.ucr.edu/upayform.htm.

3.   Fax the completed Payroll Adjustment Worksheet immediately to the Payroll office at x3314.  Make a choice on the worksheet how the check will be picked up (by the department or by the employee).

4.   Checks will be ready within 24-48 hours from the time we receive the completed Payroll Adjustment Worksheet.

5.   A “PROOF OF SERVICE” is required when checks are mailed.  The department should use certified mail or another mail delivery method that provides proof of the date and time of mailing. 

 

Additional information is provided on a question and answer format at this web address: http://accounting.ucr.edu/QA-sepr-pmt.htm

 

If you have any questions, please contact the Payroll Office at (909)787-3307.  Thank you for your assistance.