West Virginia’s employee separation process can vary considerably from other jurisdictions. Understanding your employer obligations and state-specific employee termination laws is the key to mitigating risk to your organization.
This employee separation checklist and guide offers an overview of West Virginia’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
West Virginia Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in West Virginia
West Virginia state law mandates that all employees who separate from their employer be paid all earned wages by the next scheduled payday. Employers must also pay out any earned, unused leave upon separation, unless a written policy explicitly states otherwise. The policy should be provided to employees in writing, or by posted notice.
Final payments should be made through regular pay channels, or by mail, if requested. Failure to pay wages can result in civil penalties. The employer may be required to pay the owed amount, plus interest, until the wages are fully paid.
2. Firing Employees in West Virginia
Firing employees in West Virginia is a straightforward process. Because it’s an at-will employment state, employers may fire an employee at any time, for any legally permissible reason. Unlike many other states, West Virginia does not require employers to provide any sort of notice upon separation.
3. Severance Agreements in West Virginia
If you plan to ask employees to sign a severance agreement, there are a few key considerations to remember. First, employers can include non-compete provisions in severance agreements. However, it’s important to note that they may not be enforceable against at-will employees who were terminated without cause.
If the agreement includes claims releases, you must clearly state the claims the employee is releasing under federal and state law. In West Virginia, employees may release claims under the West Virginia Human Rights Act (W.V. Code. § 5-11-1 et seq.), West Virginia Pregnant Workers’ Fairness Act, West Virginia’s equal pay laws, West Virginia’s leave laws, and West Virginia’s minimum wage and overtime laws.
Furthermore, under West Virginia law, employers have to provide a seven-day revocation period for employees to rescind their acceptance of a claims release.
West Virginia employers executing severance agreements with employees must provide the phone number for the State Bar (1-866-989-8227). Make sure any release of claims only waives claims that may have arisen prior to the effective date of the agreement.
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 West Virginia
If you’re separating from an employee with an Income Withholding for Support Order (“IWO”), report the employee’s termination to the child support agency, court, or attorney that issued the IWO as soon as possible. Your organization may register for online reporting with the Federal Office of Child Support Enforcement here.
You also may physically 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 West Virginia
If you have ceased business dealings in West Virginia—which is common when separating from the last in-state employee—your organization may formally withdraw its business registration in the state. To do so, file the appropriate forms with the West Virginia Secretary of State.
For-Profit Corporations and Non-Profit Corporations must file this Application for Withdrawal. Limited Liability Companies (LLCs) should file this Certificate of Cancellation.
Stay Compliant with West Virginia Employee Separation Requirements
Staying compliant with West Virginia’s Employee Separation Agreement regulations helps employers lessen potential liability and honor state-specific employee rights.
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