Staying current with District of Columbia employee separation requirements can be complicated, especially when you have employees working in multiple jurisdictions.
This employee separation checklist is an easy guide to Washington DC-specific employee termination laws, including final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
District of Columbia Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in District of Columbia
Under District of Columbia law, employees who separate from their employer must receive their final paycheck according to specific timelines: terminated employees should be paid on the next business day, while resigned employees must be paid either on the next scheduled payday or within 7 days from resignation, whichever is sooner. Final wages, which include monetary compensation after lawful deductions, must be paid as defined by the law.
Employers are also required to pay out any accrued and unused vacation time upon separation, unless a clear policy denies this payment. Although the law does not specify how or where to provide the final paycheck, it is advisable to issue it in the usual manner or by mail if requested.
If an employer fails to pay wages, they may face penalties of 10 percent of the unpaid amount for each business day the payment is delayed, continuing until the total equals the unpaid wages or payment is made.
2. Firing Employees in District of Columbia
The District of Columbia is an at-will employment district, which means firing employees is permissible for any reason, so long as it is not illegal. Employers that provide a group health insurance plan and have fewer than 20 employees are required to notify any separated employees of their right to continue coverage under D.C.’s state-level COBRA law, within 15 days of separation.
3. Severance Agreements in District of Columbia
Employers executing claims releases with their employees must explicitly list the claims the employee is releasing under federal and state law.
In the District of Columbia, the permissible state/district law claims that may be released include the D.C. Family and Medical Leave Act, the D.C. Parental Leave Act, the D.C. Accrued Sick and Safe Leave Act, the D.C. Universal Paid Leave Amended Act, the D.C. Human Rights Act, the D.C. Tipped Wage Workers Fairness Amendment Act, the D.C. Minimum Wage Act, and the D.C. Displaced Workers Prevention Act.
Be sure that any release of claims only waives claims that may have arisen prior to the effective date of the agreement, as opposed to those which may arise after signing.
Employers must also remember to review applicable federal employee termination laws and guidelines. For example, the NLRB’s 2023 McLaren decision restricts the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in District of Columbia
When separating from an employee with 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 may also register for online reporting with the Federal Office of Child Support Enforcement here.
If you prefer to 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.
The following information should be prepared:
- 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 District of Columbia
Should your organization separate from its last District of Columbia employee or otherwise stop doing business in the district, withdraw its registration to do business by submitting the Withdrawal of Foreign Registration Statement to the Secretary of State. This form is the same for all For-Profit Corporations, Non-Profit Corporations, and Limited Liability Companies (LLCs).
Stay Compliant with District of Columbia Employee Separation Requirements
Fulfilling your employer obligations and honoring employee rights in your Employee Separation Agreement is the key to ensuring compliance and mitigating risks.
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.
