Understanding the Mississippi employee separation process is the best way to make sure you’re meeting your employer obligations. Because employee termination laws can vary significantly between states, it’s important to carefully review the rules.
This employee separation checklist provides an overview of Mississippi final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Mississippi Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Mississippi
Mississippi does not regulate how and when final paychecks must be paid, unlike many other states. However, best practice dictates that your departing employees are fully paid any earned wages in a timely manner.
For example, some states require employers to provide final paychecks on the next regularly scheduled payday. Employers are not required to pay out accrued and unused vacation time upon separation, unless the employee contract or employer policy provides for it.
Employers who fail to pay wages to their separated employees can face civil penalties at least equal to the unpaid wages, and may even be subject to criminal penalties like jail time.
2. Firing Employees in Mississippi
Firing employees in Mississippi is a straightforward process. Because it’s an at-will employment state, both employers and employees can terminate employment for any reason—as long as it’s not illegal. Unlike some states, Mississippi does not require employers to provide any sort of notice upon separation.
3. Severance Agreements in Mississippi
If your employee separation includes a severance agreement, be sure to explicitly list which state and federal claims they are releasing. In Mississippi, employees may release Mississippi leave law claims. Next, make sure any release of claims only waives claims that may have arisen prior to the effective date of the agreement—not those that arise later.
It’s also smart to review applicable federal laws and guidance before executing a severance agreement. 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 Mississippi
If your employee has an Income Withholding for Support Order (“IWO”), you must promptly report the employee’s termination to the child support agency, court, or attorney that issued the IWO. Register for online reporting with the Federal Office of Child Support Enforcement here.
Alternatively, report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Then 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 Mississippi
If you’ve separated from your last employee in Mississippi—and it has ended your business dealings in the state—you may wish to formally withdraw your business registration. For-Profit Corporations, Non-Profit Corporations, and Limited Liability Companies (LLCs) can file this Application for Certificate of Withdrawal with the Mississippi Secretary of State to complete the process.
Stay Compliant with Mississippi Employee Separation Requirements
Staying current with the requirements for a Mississippi Employee Separation Agreement is key for employers: it helps ensure regulatory compliance, honor employee rights, and lessen legal liability for your organization.
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.
