When your company parts ways with employees in Missouri, it’s important to understand your employer obligations during the Missouri employee separation process. Because employee termination laws can vary considerably from state to state, ensuring that you have a strong grasp of the rules will lessen your organization’s legal liability.
This employee separation checklist and guide provides an overview of Missouri’s rules, including final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Missouri Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Missouri
Missouri law requires employers to pay terminated employees immediately upon separation. While the law does not specify when employees who resign must be paid, it’s best practice to provide payment on the next regularly scheduled payday. Employees must receive all earned and unpaid wages at the contract rate without any deductions. Furthermore, Missouri law does not mandate the payout of accrued and unused vacation time, unless stipulated in the employee’s contract or company policy.
Final paychecks must be provided in person, or mailed, if requested in writing. Employers who fail to pay wages may face penalties. These include paying the unpaid wages and up to an additional 60 days’ wages at the employee’s regular rate.
2. Firing Employees in Missouri
Missouri is an at-will employment state, which means firing employees for any reason—so long as it is not illegal—is permissible. However, all employers in Missouri are required to provide all separated employees with a copy of M-INF-170-11-AI: Information for Workers at the time of separation.
3. Severance Agreements in Missouri
If you ask your employees to sign a severance agreement, it’s important to understand employee rights. The severance agreement must clearly list any claims the employee is releasing, both under federal and state law. Missouri allows employees to release claims under the Missouri Human Rights Act, Missouri’s leave laws, Missouri’s wage payment laws, and Missouri’s minimum wage and overtime laws. Be sure that your agreement only waives claims which arose prior to the effective date.
Finally, take all applicable federal laws and guidance into account before executing your agreement. The NLRB’s 2023 McLaren decision and guidance limiting the use of non-disparagement and confidentiality provisions in severance agreements is one important example.
4. Reporting Employee Termination in Missouri
When separating from employees with Income Withholding for Support Order (“IWO”), you must report the employee’s termination to the child support agency, court, or attorney that issued the IWO as soon as possible. To expedite the process, employers may register for online reporting with the Federal Office of Child Support Enforcement here.
Alternatively, you may report an employee’s termination by completing the Notification of Employment Termination or Income Status section of the IWO. Then fax or mail it to the child support agency that issued it. You will need the following information:
- Employee Name
- Employee Case Identifier
- Last Known Home Address
- New Employer Address (if known)
- Date of Employee Separation
5. Withdraw Registration to do Business in Missouri
If you’re separating from your last Missouri employee and ceasing business operations within the state, you can formally withdraw your business registration. The type of form and the process varies depending on the legal structure of the organization.
For-Profit Corporations and Non-Profit Corporations must file this Application for Certificate of Withdrawal. Both types of corporations also need to obtain a tax clearance from the Missouri Department of Revenue. Use the Request for Tax Clearance form included in the Application packet to request clearance. On the other hand, Limited Liability Companies (LLCs) should file this Application for Cancellation. Unlike corporations, LLCs do not need to obtain a tax clearance to withdraw. All forms should be filed with the Missouri Secretary of State.
Stay Compliant with Missouri Employee Separation Requirements
Staying current with Missouri Employee Separation Agreement rules can help employers ensure regulatory compliance and lessen your organization’s legal liability.
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Looking for employee separation laws for a different state? Our interactive map makes it easy to find all employee termination requirements by state.
