Becoming familiar with the Wyoming employee separation process is a key employer obligation. Because employee termination laws and employee rights can greatly differ between states, it’s incumbent upon employers to do their research.
This employee separation and guide offers a helpful overview of Wyoming’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Wyoming Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Wyoming
Under Wyoming state law, all employees must receive their final paycheck according to the employer’s usual payroll schedule, or as specified by a collective bargaining agreement. Both terminated and resigning employees should be paid on the next regular payday.
However, commission-based employees are exempt if their final earnings require audit or verification. Employers must pay all due wages at this time. Unless an employee contract or policy states otherwise, and the contract is signed by the employee, all earned and unused vacation time must be paid out at the same time.
Wyoming law does not specify the method for delivering final wages, but it’s considered best practice to use regular pay channels. Employers who fail to meet these payment requirements may face misdemeanor charges. They also may be liable for unpaid wages plus 18 percent interest, and incur fines up to $750 per offense—in addition to covering the employee’s attorney fees and costs.
2. Firing Employees in Wyoming
Wyoming is an at-will employment state, which makes firing employees a relatively simple process. However, note that all employers in Wyoming are required to notify separated employees of the potential availability of unemployment compensation benefits. This notice must be provided at the time of separation.
3. Severance Agreements in Wyoming
When you ask an employee to sign a severance agreement, you must clearly list which claims are being waived under both federal and state law. In Wyoming, this includes claims under the Wyoming Fair Employment Practices Act, Wyoming Civil Rights Act, Wyoming’s leave laws, and Wyoming’s minimum wage and overtime requirements. Be sure that any claims release only covers issues that arose before the agreement’s effective date, leaving any future claims unaffected.
Employers should also be aware of applicable federal regulations. 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 Wyoming
If your employee is subject to an Income Withholding for Support Order (“IWO”), you must 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 may opt to 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. Prepare 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 Wyoming
If separating from your last Wyoming employee ends your business dealings in the state, your organization may choose to withdraw its registration to do business in the state. You can accomplish this by identifying your company’s legal structure and filing the appropriate forms with the Wyoming Secretary of State.
For-Profit Corporations must file this Application for Certificate of Withdrawal, and Non-Profit Corporations must file this Application for Certificate of Withdrawal. Limited Liability Companies (LLCs) must file this Application for Certificate of Withdrawal.
Stay Compliant with Wyoming Employee Separation Requirements
Staying compliant with Employee Separation Agreement regulations will limit your organization’s exposure to legal liability.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
