Unclaimed Paychecks: What Employers Need to Know in Indiana

In the world of business, there are few constants, but one of them is this: change. Companies hire, they pay wages, and they sometimes part ways with employees. It's all part of the ebb and flow of the workforce. But what happens when an employee leaves and doesn't collect their final paycheck? Indiana has a set of rules and procedures to address this situation, ensuring both employers and employees are treated fairly.

Assuming an employee has been paid their final paycheck but has not picked it up, and the employer has the employee's contact information, the money is presumed to be abandoned after one year. This is the point at which employers need to take action.

**Step 1: Sending a Notice**

According to Indiana Code (IC) 32-34-1.5-24, the first step for employers is to send a notice to the employee. This notice should be sent via the best mail affordable to the employer. It's essential to make a reasonable effort to inform the employee that their final paycheck is waiting.

**Step 2: Waiting 60 Days**

After sending the notice, employers must wait patiently for 60 days. This grace period allows employees to respond and claim their wages. During this time, employers should keep a record of all communication and attempts to contact the employee.

**Step 3: Filing a Report with the State Attorney General**

If, after the waiting period, the employee still hasn't claimed their wages, it's time to take the next step. Employers need to file a report with the State Attorney General. You can find the reporting form at https://www.indianaunclaimed.gov/app/submit-a-report. This report essentially informs the state that there are unclaimed wages.

**Step 4: Making a Payment to the State**

Once the report is filed, employers must make a payment to the State according to IC 32-34-1.5-29. This payment is the equivalent of the unclaimed wages. By doing this, the employer is transferring the responsibility for the abandoned wages to the state.

**Step 5: Keeping Records for 10 Years**

Finally, employers should keep meticulous records of all correspondence, notices, reports, and payments related to the unclaimed wages for a minimum of 10 years. This documentation is crucial for legal compliance and audit purposes.

After following these steps, employers are no longer liable to the employee for the unclaimed wages. The responsibility has shifted to the state to make reasonable efforts to locate the employee and return their wages.

It's important to note that these procedures are in place to protect both employees and employers. They ensure that employees have ample opportunity to claim their wages and that employers fulfill their legal obligations.

In conclusion, when it comes to unclaimed paychecks in Indiana, there's a clear process to follow. Employers must send notices, wait, report to the State Attorney General, make a payment, and keep records. By adhering to these guidelines, businesses can navigate the complexities of unclaimed wages while maintaining legal compliance.

Treated unfairly at work?

The U.S. Equal Employment Opportunity Commission enforces Federal laws prohibiting employment discrimination. Certain federal laws protect you against certain types of unfair treatment at work. Discrimination at work is the most often form of unfairness cited by our clients.

Employment discrimination involves:

• Unfair treatment because of your race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability or genetic information.

• Harassment by managers, co-workers, or others in your workplace, because of your race, color, religion, sex (including pregnancy, gender identity, and sexual orientation), national origin, age (40 or older), disability or genetic information.

• Denial of a reasonable workplace accommodation that you need because of your religious beliefs or disability.

• Retaliation because you complained about job discrimination, or assisted with a job discrimination investigation or lawsuit.

If you suffer discrimination at work, you can file a Charge of Discrimination with the US Equal Employment Opportunity Commission (“EEOC”). In fact, all of the laws enforced by EEOC, except for the Equal Pay Act, require you to file a Charge of Discrimination with that agency before you can file a lawsuit against your employer.

Importantly, not all companies are covered by the laws that the EEOC enforces, and not all employees are protected. It is different depending on the type of employer, the number of employees it has, and the type of discrimination alleged.

We advise clients that there are strict time limits for filing a charge. So, contact an attorney or the EEOC right away if you are going to file a charge for employment discrimination.