A. Under Washington state law, you must pay a terminated employee at the next regularly scheduled payday. While you do not have to hand them a paycheck on their last day of work, you may not withhold their paycheck until they have returned company property. In fact, if you do fail to pay your terminated employee on time, they may sue you in civil court and be entitled to double damages.

If your employees are issued company property, such as safety equipment, laptop computers, cell phones, etc., you should have them sign an agreement that they will return these items upon their termination. This agreement can contain information about the monetary value of the items, an agreement that the employee will repay the company for any items not returned, and that this amount can be withheld from their final check. Be sure you have your company attorney review this agreement before you put it into use.

You should be aware that the Fair Labor Standards Act prohibits employers from making deductions from a non-exempt employee's paycheck to the extent that their wages fall below the minimum wage. Therefore, you may have to take an employee to Small Claims Court to recoup your money. Also, you can notify the employee that failing to return the company's property may constitute theft, and you will be notifying the local authorities. Oftentimes this will be enough motivation to get your items returned.

Q. I am a small business with part-time, full-time and seasonal employees. I am confused about whom I have to pay holiday pay to and whom I have to provide vacation and sick pay to. What does Washington State require?

A. State law does not require you to pay anyone for vacation time, sick days or holidays. All of these are benefits that businesses choose to provide, based on their ability to compensate their employees and remain profitable.

Benefits are very important to employees, and help to attract and retain good employees. As a small business owner, you should consider which benefits you can afford to provide, in the best interest of your company and your employees. You may want to provide some employees with holiday pay, sick days and/or vacation time. As you grow, you can increase your benefits if you are able. You may set a number of months that an employee must work for the company, as well as a minimum number of hours per week, before they qualify. This will eliminate some or all of your part-time and seasonal employees. Be sure that your policy is clearly stated in writing to avoid any confusion.

Some small businesses must remain open on holidays and wonder if they are required to pay employees time and a half for the holiday. State law does not require that you pay extra for employees working on a holiday. Also, if employees work 40 hours in a workweek, and have a paid holiday in that week, giving them 48 hours total pay, you again are not required to pay them overtime pay. Overtime is only required to be paid on actual hours worked, and does not include holiday, vacation, or sick pay.

Just remember that all employees appreciate and need some paid time off. Our lives are very stressful these days and we are all more productive when we have an opportunity to be relaxed and refreshed.

(Editor’s Note. Julie Tappero is the owner of West Sound Workforce, a staffing agency which has branches in Gig Harbor and Poulsbo. She can be reached at (253) 853-3633.).