How must an employer in California handle the final paycheck for a recently deceased employee?

The California labor code requires employers to pay employees who quit without giving prior notice within 72 hours of quitting. However, there is no provision in the law that addresses how an employer should handle final paychecks for deceased employees. In these circumstances, employers in California will need to follow the state probate code requirements.

California Probate Code sections 13600 to 13605 provide the following: "At any time after a husband or wife dies, the surviving spouse or the guardian or conservator of the estate of the surviving spouse may, without procuring letters of administration or awaiting probate of the will, collect salary or other compensation owed by an employer for personal services of the deceased spouse, including compensation for unused vacation, not in excess of fifteen thousand dollars ($15,000) net." This dollar limit may be adjusted annually for inflation.

Married employees. If a deceased employee had a spouse or registered domestic partner, the employer can release the wages to the spouse or partner upon receipt of an affidavit or a declaration under penalty of perjury that includes all of the required information in California Probate Code Section 13601.

Unmarried employees. If the employee was unmarried and had no registered domestic partner, the employer can pay the wages as requested by the executor of the estate.

Other beneficiaries. California Probate Code sections 13100 to 13116 include additional provisions for paying a deceased employee's wages to other potential beneficiaries.

Unclaimed wages. If there is no surviving spouse or partner, executor of the estate, or other beneficiary claiming a deceased employee's unpaid wages, the employer must send the unclaimed wages to the California Labor Commissioner with a letter of explanation.