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Payment of Fringe Benefits at Termination

Agency: Labor & Economic Growth


An employer shall not withhold a payment of compensation due an employee as a fringe benefit to be paid at a termination date unless the withholding is agreed upon by written contract or a signed statement obtained with the full and free consent of the employee without intimidation or fear of discharge for refusing to agree to the withholding of the benefit.

An employer shall pay fringe benefits due an employee at termination on the regularly scheduled payday for the period in which the termination occurs, unless otherwise specified in the terms of a written contract or written policy.

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