Payroll Services

Payment of Wages Upon Termination Instructions

UC’s Office of General Counsel has determined that the University is not subject to California Labor Code, Sections 200-243.  This web page specifically addresses when to payout final wages for voluntary resignation and retirements (the section commonly referred to as the “72-hour law”). We will implement this new determination immediately for all Non-Represented employees; please report their final hours on their next regular payday.

In regard to Represented employees, we must comply with any language specified in the employee’s collective bargaining agreement.  By following the contract language you will, in many cases, be able to pay the final wages for a voluntary resignation or retirement on the employee’s next regular payday and the request for a separation check by Central Payroll will no longer be required.  This will also allow the employee to receive their final pay via their normal election – direct deposit, for example.  

* Final wages refers to unpaid earnings to date, overtime, shift differential, all unused compensatory time and compensation for unused vacation hours.

A Final Pay Guide has been created to assist departments in determining when payout should occur.

Department Responsibilities

Discharged Employees

If an employee is discharged, all final wages* earned and unpaid at the time of the discharge are due and payable immediately.

As soon as the department is notified that an employee will be discharged, the department should complete the Separation Check Request form. Fax the completed form to your Payroll Services representative at 530-757-8597. Following are the detailed procedures for departmental staff:

  1. Calculate any additional accrual of vacation to be included in payment of TRM.
  2. Calculate wages payable as appropriate.
  3. Report outstanding vacation (VAC) usage on an EDLR. Do not report REG pay.
  4. Process a separation bundle in PPS.
    • Change all appointment time codes to N. (Positive time with no time rosters generated).
  5. Submit a Separation Check Request to payroll. Please allow Payroll Services staff 48 hours to process the request. DO NOT send the employee to Payroll Services to pick up their separation check.
  6. Submit the separation IDOC to Payroll.
  7. Designated departmental representative picks up employees final paycheck.
  8. Hand the employee their separation paper check on their last day of work.
  9. Inform your OPTRS preparer and backup preparer that the employee has separated and all final wages have been paid. The OPTRS preparer should NOT enter time worked for the employee on the OPTRS IDTC rosters.
  10. Verify vacation balance after employee's normal pay cycle has computed.
  11. Adjust vacation accrual as needed to zero out any remaining balance.
Voluntary Resignations and Retirements

If an employee resigns, refer to the Final Pay Guide to assist in determining when payout should occur. By following the contract language you will, in many cases, be able to pay the final wages on the employee’s next regular payday and the request for a separation check by Central Payroll will no longer be required.  This will also allow the employee to receive their final pay via their normal election – direct deposit, for example.  

When your department has been notified that an employee is resigning, the department must process a separation transaction in a timely manner using the SEPS bundle in CICS PPS for the type of employee separating or the Separation action in web-based PPS.  This is NOT the same as allowing the PPS employee status to go “Inactive” for 4 months (also known as I4) and ultimately allowing the PPS system to separate the employee.   

  1. Refer to the Final Pay Guide to assist in determining when payout should occur.
  2. Process a separation bundle in PPS.
  3. Report all Final wages (unpaid earnings to date, overtime, shift differential, all unused compensatory time (CMP) and compensation for unused vacation hours (TRM) to be paid out in accordance with the employee’s collective bargaining agreement.
  4. Report outstanding vacation (VAC) usage on an EDLR.
  5. Submit the separation IDOC to Payroll.
  6. Verify vacation balance after employee's normal pay cycle has computed.
  7. Adjust vacation accrual as needed to zero out any remaining balance.
  8. For BW paid employee separations; if the separation date encompasses two Pay Period End dates, enter both PPE’s on the check date that will pay the earliest (report on open roster for the PPE cycle in process, separate PPE will be on EDLR).

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