Understanding the Oklahoma employee separation process helps employers stay compliant with state and federal regulations. Because employee termination laws may vary, depending on the state, it’s important to know your employer obligations.
This employee separation checklist and guide will brief you on key components of Oklahoma’s final paycheck requirements, separation notices, severance agreements, reporting employee termination, and withdrawing registration to do business in the state.
Oklahoma Employee Separation Checklist
- Provide final paycheck
- Issue separation notice
- Execute severance agreement
- Report termination
- Withdraw registration to do business
1. Final Paycheck Requirements in Oklahoma
Oklahoma law stipulates that employees who separate from their employer must be paid on the next scheduled payday, whether they are terminated or resign. All wages due must be paid in full, minus any offsets or amounts in bona fide dispute.
While employers are not obligated to pay out accrued and unused vacation time, unless stipulated by an employee contract or policy, final wages should be provided through regular pay channels. They may also be paid by mail, if requested.
If employers fail to pay wages, they may be liable for the unpaid wages. They may also incur additional penalties, whichever is the lesser: either two percent of the unpaid wages for each day they remain unpaid, or an amount equal to the unpaid wages.
2. Firing Employees in Oklahoma
Because Oklahoma is an at-will employment state, firing employees is permissible for any legal reason. Oklahoma does not have any sort of separation notice or other documentation requirements, which is different from many other states.
3. Severance Agreements in Oklahoma
If you ask your employees to sign a severance agreement, you must specifically include the claims the employee is releasing, under both federal and state law. In Oklahoma, employees may waive claims under the Oklahoma Anti-Discrimination Act, Oklahoma Protection of Labor Act, and Oklahoma’s leave laws. However, any release of claims only should only waive claims that arose prior to the effective date of the agreement.
Finally, employers should take care to look over federal laws governing severance agreements. For example, the NLRB’s 2023 McLaren decision restricts the use of non-disparagement and confidentiality provisions in severance agreements.
4. Reporting Employee Termination in Oklahoma
If you terminate an employee with an Income Withholding for Support Order (“IWO”), remember to report the employee’s termination to the child support agency, court, or attorney that issued the IWO as soon as possible. You may register for online reporting with the Federal Office of Child Support Enforcement here.
Alternatively, you may report the termination by completing the Notification of Employment Termination or Income Status section of the IWO. Next, 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 Oklahoma
If your organization ceases to do business in Oklahoma—which is common when separating from your last in-state employee—you can withdraw your registration to do business in the state. The type of form you’ll submit to the Oklahoma Secretary of State depends on what kind of legal entity is involved.
For-Profit Corporations and Non-Profit Corporations should file this Certificate of Withdrawal. Limited Liability Companies (LLCs) may file this Application for Withdrawal.
Stay Compliant with Oklahoma Employee Separation Requirements
Understanding your employer obligations and the employee rights affecting an Oklahoma Employee Separation Agreement is crucial. Knowing the law ensures that you don’t expose your company to any unnecessary 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.
