Understanding the Connecticut employee separation process is the key to ensuring legal compliance and mitigating risk. However, employee termination laws can vary significantly between states.
This employee separation guide and checklist offers an overview of what employers need to know about final paycheck requirements, separation notices, and severance agreements to reporting employee termination and withdrawing registration to do business in Connecticut.
Connecticut Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Connecticut
Under Connecticut law, employees who separate from their employer must receive their final paycheck promptly. Terminated employees must be paid by the next business day. Employees who resign or are laid off must be paid on the next scheduled payday. Commissions owed at the time of contract termination must be paid by the later of the contract-specified date or 30 days after termination, with subsequent commissions due within 30 days of becoming due.
Final wages must include all earned compensation, although employers are not obligated to pay out unused vacation unless stipulated by company policy or contract. Final payments can be made through regular channels or by mail. Employers who fail to comply may face penalties, including fines up to $5,000, imprisonment for up to 5 years, or both.
2. Firing Employees in Connecticut
Because Connecticut is an at-will employment state, firing employees is permitted for any reason, so long as it is not illegal. However, note that all employees in Connecticut who separate from employment, for any reason, must be provided Form UC-61 – Unemployment Separation Packet/Notice, and a copy of their termination notice.
Employees must also be informed they can submit a written statement disagreeing with the content of their termination notice. This statement must be kept on file at the company.
3. Severance Agreements in Connecticut
When drafting severance agreements, employers must clearly list the claims being released under both federal and state law. In Connecticut, state law claims that may be released include those under the Connecticut Family and Medical Leave Act (Conn. Gen. Stat. Ann. §§ 31-51kk et seq.), Connecticut’s free speech law (Conn. Gen. Stat. Ann. § 31-51q), the Connecticut Fair Employment Practices Act (Conn. Gen. Stat. Ann. §§ 46a-60, et seq.), Connecticut’s minimum wage and wage payment laws (Conn. Gen. Stat. Ann. §§ 31-58 to 31-76o), the anti-retaliation provision of the workers’ compensation statute (Conn. Gen. Stat. Ann. 31-290a), and Connecticut’s Equal Pay Law (Conn. Gen. Stat. § 31-75).
Employers should ensure that any release of claims only covers those that have arisen before the agreement’s effective date—not those that may arise afterward. Finally, employers should be aware of federal law requirements, particularly the National Labor Relations Board’s recent decision and guidance. Their General Counsel has limited the use of non-disparagement and confidentiality clauses in severance agreements.
4. Reporting Employee Termination in Connecticut
If the terminated employee has an Income Withholding for Support Order (“IWO”), employers are required to promptly report the employee’s termination to the child support agency, court, or attorney that issued the IWO. You can register for online reporting with the Federal Office of Child Support Enforcement here.
Employers can also report an employee’s termination physically. Complete the Notification of Employment Termination or Income Status section of the IWO and fax or mail it to the child support agency that issued it.
You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Connecticut
When an organization concludes its business activities in Connecticut, such as after separating from its final Connecticut employee, it must formally withdraw its registration by submitting the appropriate paperwork to the Secretary of State. The specific form required depends on the type of entity.
For-Profit and Nonprofit Corporations should complete the Application for Certificate of Withdrawal. Limited Liability Companies (LLCs) should file the Statement of Withdrawal.
Stay Compliant with Connecticut Employee Separation Requirements
Staying current with all state-specific Connecticut Employee Separation Agreement requirements is crucial for delivering on employer obligations and honoring employee rights.
Looking for instant access to a reliable database of federal, state, and local laws? Check out SixFifty’s employment law platform. With SixFifty, you can research state-specific laws, and generate multi-state handbooks, policies, addenda, agreements, and more in a matter of minutes.
Want to see how it works? Schedule a free demo today!
Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
