In contrast to a typical termination of employment, the law imposes additional obligations on employers when an employee dies. The purpose of this checklist is to assist you in the unfortunate instance where a death occurs.
Work-related Death
- Immediately report the death to Cal/OSHA.
- Notify your workers' compensation insurance carrier.
- Notify retirement plan facilitator.
Work- and Nonwork-related Death
- Calculate final pay (worksheet) and cut check within 72 hours of receiving notice of the death.
- Provide next of kin or the employee's emergency contact COBRA and HIPP notifications, and get request to mail information in writing (email is acceptable) and to what address.
- Communicate with next of kin regarding how to gather and deliver personal belongings.
- Forward any unclaimed wages to the state controller within three years following date of death.
- Send notice to COBRA plan administrator (COBRA Notice to Plan Administrator)
- Send notice of COBRA and HIPP rights to any employee dependents
- Contact benefits provider regarding disposition of life insurance and/or retirement benefits.
- Provide employee assistance program (EAP) counseling, if appropriate or available.
Release of Final Paycheck
- Employers may not release final pay to a surviving spouse, registered domestic partner or guardian or conservator of an estate (Survivor) without an Affidavit to Collect Compensation of Deceased, as required by the California Probate Code.
- It is not the employer's responsibility to assist in the completion of this Affidavit, nor should you.
- If a survivor requests disbursement of the final paycheck, you may provide a copy of this form and recommend that it be completed with the assistance of legal counsel.
- The Affidavit allows a Survivor to collect unpaid wages before the estate has been formally settled. No court approval of the Affidavit is required.
- The Affidavit authorizes a Survivor to collect salary or other compensation owed to the decedent, including compensation for unused vacation, not in excess of $5,000 net.
- In the case of multiple employers, not more than $5,000 net total may be collected from all of the employers of the decedent.
- The $5,000 net does not apply if the decedent is a firefighter or peace officer.
- The net total may be increased based on cost-of-living adjustments made after January 1 of the year preceding the death. The "Consumer Price Index for all Urban Consumers," as published by the United States Bureau of Labor Statistics (www.bls.gov), shall be used as the basis for determining the changes in the cost of living.
- The cost-of-living increase shall equal or exceed one percent before any adjustment is made. The net amount payable may not be decreased as a result of the cost-of-living adjustment.
- Track receipt of Affidavit and payment of final check (use this form in English or Spanish) to survivor. Maintain a copy of this completed form, along with the Affidavit, in the decedent's personnel file.
- If the Survivor includes any medical information on the Affidavit, maintain it in the decedent's personnel file.