Wage Disputes Regarding Final Wages Upon Termination of Employment

Wage Disputes Regarding Final Wages upon Termination of EmploymentWhen any employee shall cease to work for an employer, whether by discharge or by voluntary withdrawal, the wages due him or her on account of his or her employment must be paid to him or her at the end of the established pay period.  RCW 49.48.010.  In calculating the final wages owed to an employee, withholding is permitted where an employer’s deduction is: “(1) Required by state or federal law; or (2) Specifically agreed upon orally or in writing by the employee and employer.”  Id.In most cases, even if a former employee disputes the amount of compensation proposed by an employer, it is in the employer’s interest to pay the amount believed to be the accurate payment owed in good faith, and then to open a dialogue with the former employee to address the disputed portion of any wages claimed.  This may protect the employer from more substantial consequences if the dispute ultimately escalates to a formal wage claim or civil suit.“Any employer … who … [w]ilfully and with intent to deprive the employee of any part of his or her wages, shall pay any employee a lower wage than the wage such employer is obligated to pay such employee by any statute, ordinance, or contract … [s]hall be guilty of a misdemeanor.”  RCW 49.52.050(2).  A finding of willful deprivation of wages under that section may expose the offending employer to exemplary damages, costs and attorney’s fees.  RCW 49.52.070.However, there can be no finding of willful deprivation of wages under RCW 49.52.050 where there exists a bona fide dispute as to the employee’s entitlement to payment of such wages.  See McAnulty v. Snohomish Sch. Dist. 201, 9 Wn.App. 834, 515 P.2d 523 (1973); Ebling v. Gove’s Cove, Inc., 34 Wn.App. 495, 663 P.2d 132 (1983).  This is why an employer should pay wages that are properly calculated and due to a former employee, even if there may be a bona fide dispute regarding the former employees claim to additional wages.You can find out more by visiting the Washington State Department of Labor and Industries Wage & Hour website at http://www.lni.wa.gov/WorkplaceRights/Wages/.  It is definitely a good idea to consult with an attorney versed in employment regulations to determine an appropriate course of action if you are faced with a wage dispute, and to understand how wage regulations and other employment laws may come into play.