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Navigating the death of an employee can be challenging, from supporting grieving coworkers to complying with various state and federal laws. One issue that frequently crops up for employers is how to address a deceased employee’s final paycheck. 

State law generally regulates the requirements an employer must meet before paying the deceased employee’s final wages. In Colorado, the Colorado Wage Act generally requires an employer to pay wages to the deceased employee’s surviving spouse or personal representative if one has been appointed. However, before making payment, the employer must follow certain steps to ensure they are delivering the final paycheck to the appropriate party 

Before making the final payment, an employer must obtain proof that the individual requesting the final paycheck is authorized to act on behalf of the deceased employee. That is generally done via an affidavit from the successor or personal representative of the deceased employee or an authorized order from the probate court. The employer should also request a copy of the death certificate. Once the employer has made the final payment, the recipient must acknowledge in writing the receipt of the payment.

The employer is not responsible for drafting an affidavit or other probate-related documentation on behalf of the deceased employee. The Colorado Judicial Branch, however, has resources an employer can share with the family of the deceased employee to assist with the probate process. 

Sorting out whether the deceased employee’s estate has a personal representative and getting appropriate documentation can take time. In Colorado, there is no specified timeline on when an employer needs to remit a final paycheck for a deceased employee, but the employer can be held liable for remitting payment to an incorrect party. Accordingly, employers should exercise great care and receive proper documentation before delivering the deceased employee’s final paycheck to reduce potential legal exposure.

Employers Council can assist with best practices in handling the death of an employee. Learn more in our whitepaper, and if you have any questions or need assistance, please contact our Member Experience Team.