Employee Termination Checklist

Confirm with the manager and employment counsel whether this is voluntary, involuntary for cause, involuntary not-for-cause, or part of a RIF. The classification drives downstream obligations — separation agreement, WARN, unemployment response, and exit-interview cadence all branch on this answer.

State final-pay deadlines vary widely. CA requires same-day final pay for involuntary separations and 72 hours for resignations; most states default to the next regular payday. Late final pay in CA triggers waiting-time penalties of up to 30 days of wages — confirm the rule for the work-state before the separation meeting.

For involuntary separations with severance, route the agreement through employment counsel before delivery. Include OWBPA disclosures if the employee is 40+ (21-day consideration, 7-day revocation; 45 days for group RIFs). Confirm any non-compete language is enforceable in the work-state — CA, MN, ND, OK broadly bar them.

Federal WARN: 60-day notice for a plant closing or mass layoff (100+ employees, 50+ affected). Several states (CA, NY, NJ, IL) impose stricter thresholds and notice rules. Late notice = back pay and benefits up to 60 days per affected employee — this is not a fix-on-discovery item.

HR partner attends with the direct manager. Deliver the message in plain language, confirm the last day worked, walk through the separation packet, and answer benefits and final-pay questions. Do not negotiate the decision in the room — that conversation already happened with leadership and counsel.

Coordinate with IT to disable SSO, email, VPN, code repos, ATS, HRIS, payroll, and admin consoles at the meeting start time — not after. For involuntary separations, simultaneous shut-off limits exfiltration risk. Preserve the mailbox and Slack history per legal-hold policy before deprovisioning.

Use the property checklist from the employee record — laptop, monitor, badge, keys, parking pass, corporate card, YubiKey. For remote employees, ship a pre-paid return label with a return deadline; document any items not returned for final-pay deduction (only where state law permits — CA generally does not allow paycheck deductions for unreturned property).

Packet includes: separation letter with last-day-worked, COBRA general notice, final-pay summary, PTO payout statement, 401(k) distribution options, unemployment-insurance pamphlet (state-specific), and any state-required separation notices (NY Form IA 12.3, NJ BC-10, CT UC-61, etc.).

Run an off-cycle final paycheck if the state requires same-day or 72-hour issuance (CA, CO, HI, MA, MI, MO, NV). Include all earned wages, commission true-ups, and reimbursable expenses. Direct deposit is fine where authorized; otherwise a physical check at the meeting.

CA, CO, MT, ND, NE, IL treat accrued vacation as wages — payout required regardless of policy. Other states follow the handbook. Sick-leave payout is generally not required. Confirm the rule and the policy before zeroing balances in the HRIS.

Plan administrator must send the election notice within 14 days of the qualifying event (44 days where the employer is the plan administrator). Send via tracked mail to the home address on file; the employee then has 60 days to elect. Use the DOL model notice or the broker's compliant template.

Notify the 401(k) recordkeeper of the separation date so the participant receives distribution options — cash out, rollover to IRA, rollover to new employer plan, or stay in plan if balance over $7,000. Confirm any unvested employer match is forfeited per the vesting schedule.

In Workday / BambooHR / Rippling / Gusto, change status to Terminated, set the separation date, code the reason consistent with what payroll and unemployment will report, and end-date all benefits, manager assignments, and pay groups.

Send the separation report to payroll (final-pay reconciliation), the benefits broker (carrier terminations and COBRA setup), and the 401(k) administrator (distribution packet). Mismatched separation dates across vendors create coverage gaps and double-billing.

Move the I-9 to the terminated-employee I-9 file. Retention is the later of three years from hire or one year from separation — calculate the destruction date now and tag the record. ICE audits routinely flag missing or improperly retained I-9s.

The manager sends the team note; HR confirms scope and tone before it goes out. Update the org chart, reassign direct reports, reroute on-call rotations and approval workflows, and notify external contacts (vendors, customer-facing relationships) where the departure affects them.

Voluntary departures only — exit interviews on involuntary separations are not productive and create legal exposure. Use a consistent question set, capture themes for the quarterly attrition readout, and route any harassment or retaliation disclosures to ER for investigation under separate process.

Email the employee a copy of their signed NDA, IP assignment, and any enforceable non-solicit clauses with the relevant durations. Tone is informational, not threatening — but the written reminder matters if a dispute arises later.

Check with the broker or COBRA administrator on whether the former employee elected. If unelected at day 60, coverage lapses and the file closes. If elected, confirm the first premium was paid within the 45-day grace window so coverage is actually in force.