Final Paycheck
Obtaining Final Paycheck, Unpaid PTO, and Bonuses
When someone dies while still employed, one of the financial tasks that often gets overlooked is collecting their final paycheck and any unused paid time off (PTO). This can include unpaid wages, accrued vacation, or other benefits like bonuses or reimbursements that were earned but not yet paid. Although it may seem straightforward, employers are not permitted to release these funds without formal documentation.
If no one takes action, this money can sit unclaimed. In some cases, it may even be lost if the estate is closed without ever addressing it.
Following up on this is important because final pay and PTO are part of the deceased person’s estate. That means the money belongs to the estate and must be distributed according to the will or through the probate process. For many families, this income provides crucial support for covering funeral expenses or managing early estate costs.
In Louisiana, employers are required to pay out earned wages and accrued PTO. However, the employer typically requires specific documents before they can proceed.
How to handle this:
Gather Needed Documents
To request payment, you will typically need to send the following to the employer’s HR or payroll department:
- A certified copy of the death certificate
- Your name and contact information
- Legal documents proving your authority to act for the estate, such as Letters Testamentary or Letters of Administration
If you are unsure who to contact, start with Human Resources and ask to speak with the person who handles final payments. Some companies may also have a formal process for estate claims listed on their website.
What Should Be Included
The final payment should include:
- Wages earned up to the date of death
- Accrued vacation or PTO (based on company policy)
- Unpaid bonuses, commissions, or reimbursements
If you believe money is missing, ask the employer for a written breakdown. Do not assume they will automatically include all categories of compensation.
What Happens to the Money
These funds do not go directly to surviving family members unless the estate is formally passed to them through a will or court process. The check is typically issued in the name of the estate. That is why proof of your legal role is so important.
If the employer refuses to pay or delays without explanation, you can contact the Louisiana Workforce Commission at 225-342-3111 or file a wage claim through their website. You may also want to consult with an estate attorney who can follow up on your behalf and ensure everything is handled properly.
Taking care of this task early can prevent delays and make sure the estate receives everything it is owed.
