In the extremely unfortunate event when an employee dies, what steps as an employer are you required to take?
In New York, requirements for paying deceased employees is outlined in Labor Law Section 191.
The law requires employers to make “reasonable efforts” to pay a deceased employee’s wages within the time periods specified in that Section.
Here’s a list of what “reasonable efforts” mean to include…
In addition to these “reasonable efforts” the employer may also take additional action in attempt to identify an appropriate contact to receive the wages.
If - after all of these efforts - you’re unable to locate or contact the estate administrator or next of kin of the deceased employee, you must remit the funds to the Office of State Comptroller after 3 years in accordance with the State Abandoned Property Law.
Also, it's worth mentioning that employers are only charged for Social Security task if they're (you're) issuing the final paycheck in the same year that the employee passed away.
For more information on what to do when an employee dies, check out information from the New York State Department of Labor.
If you’re still confused, or have a question, get in touch with us. We’d love to help you out!