§ 28-14-4 - Payment on separation by employer.
SECTION 28-14-4
§ 28-14-4 Payment on separation byemployer. – (a) Whenever an employee separates or is separated from the payroll of anemployer, the unpaid wages or compensation of the employee shall become due onthe next regular payday and payable at the usual place of payment.
(b) Whenever an employee separates or is separated from thepayroll of an employer after completing at least one year of service, anyvacation pay accrued or awarded by collective bargaining, written or verbalcompany policy, or any other written or verbal agreement between employer andemployee shall become wages and payable in full or on a prorated basis with allother due wages on the next regular payday for the employee.
(c) Whenever an employer separates an employee from thepayroll as a result of the employer liquidating the business, merging thebusiness, disposing the business, or removing the business out of state, allwages become immediately due and payable within twenty-four (24) hours of thetime of separation at the usual place of payment. Additionally, if the employeehas completed at least one year of service with the employer, holiday pay,vacation pay in full or on a prorated basis, and insurance benefits due theemployee under a collective bargaining agreement, company policy, or otheragreement between the employer and employee shall be considered as unpaid wagesdue and payable within twenty-four (24) hours of the time of separation at theusual place of payment.