Final Paycheck

Many states have laws that specify when departing employees must be given their final paycheck. Often, the outcome depends on whether you are leaving because you quit or because you were fired or laid off.

For example, in some states, employees must be given their final paycheck immediately or within a certain number of hours if they are terminated or laid off, but not until the next scheduled payday if they quit. Some of these state laws also specify whether your accrued, but unused, vacation pay must be included in your final paycheck. For more information, contact your state's labor department.

Health Insurance

A 1986 federal law -- the Consolidated Omnibus Budget Reconciliation Act (COBRA) -- and similar state laws provide for health insurance continuation when an employee quits, is laid off, or is fired for any reason other than gross misconduct.

Under COBRA, employers with 20 or more employees must offer them the option of continuing to be covered by the company's group health insurance plan for a specific period -- often 18 months -- after employment ends. However, the worker must pay the full cost of participating in this coverage. Continued health care coverage under COBRA also includes coverage for your dependents -- at your cost. (Under some other circumstances, coverage may be extended for up to 36 months -- for example, if the employee dies, his or her dependents can continue coverage for up to 36 months.) To learn more about COBRA, refer to the U.S. Department of Labor website at http://www.dol.gov.

Your state might have its own health care continuation law that provides better or broader coverage than the federal COBRA. This means it may cover smaller employers and/or provide more benefits. Your employer must follow whichever law is most beneficial to you. To find out more about your state's law, contact your state insurance office or labor department.