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Termination Letter & Separation Notice Requirements by State

August 17, 2022 by Joe Turner

employee reviewing separation notice requirements by stateWhen an employer lets go of an employee, there could be regulations governing the process of separation depending on the state they do business. Employers must keep track of these states that require separation notice or termination letters to avoid non-compliance issues. A termination letter or separation notice usually involves providing notification to the employee and/or the state when an employee separates. A number of states have required separation notices as specific forms employers must provide upon termination. Employers should know the statutory separation notice requirements by state, how to access and when to deliver them.

To learn how you can reduce time spent on multi-state unemployment compliance, visit Experian Employer Services.

Separation Notice Requirements by State

Arizona

Arizona is among the states that require separation notice, specifically requiring Form UIB-1241A be provided to employees who become unemployed detailing how they can claim unemployment benefits. Copies are available online.

California

Employees discharged, taking a leave of absence, laid off, or have a similar change in their employment status must be given written notice along with Form DE 2320 immediately.

Connecticut

Form UC-61 must be provided to all departing employees. Employers need to provide employees with a copy of their termination notice and inform them they can submit a written statement disagreeing with its content. Employers must retain this documentation on file.

Georgia

In Georgia, employers must complete Form DOL-800 and deliver to the employee, signed and dated on their final day of work or mailed to their last known address within three days.

Illinois

Employees must receive Form CLI111L from their employer after they have been separated from employment for seven or more days.

Iowa

A Notice of Separation form, 60-0154, must be completed by an employer when an employee leaves or refuses employment and the employer believes they are not qualified for unemployment benefits. This notice can also be filed online.

Maryland

Employers must provide notice of unemployment availability to separated employees.

Massachusetts

Upon separation of work, employees must be provided with Form 0590-A, to be delivered in person or sent to the employee’s last known address within 30 days of separation.

Michigan

Form IA 1711 must be provided to an employee upon separation unless an employer is filing claims on behalf of the employee. If a copy of the form has been previously delivered to the employee or a written statement, detailing the same information, is provided then the form is not necessary.

Mississippi

In Mississippi, employers must place an unemployment law poster in a space clearly visible to all employees.

Missouri

Separated employees must receive Form M-INF-288-5 from their employer.

Nevada

Notice DETR-ESD must be given to all separating employees from the employer.

New Jersey

Form BC-10 must be given to employees that separate for whatever reason for at least 7 days at the time of separation.

New York

Employers subject to the state’s unemployment law must inform employees of their right to apply for UI benefits. Employees must also complete Form IA 12.3 when separated from employment for longer than 3 days.

Pennsylvania

Employers are obligated to notify departing employees of unemployment compensation availability. Form UC-1609 details what information is required.

Rhode Island

In Rhode Island, employees must be informed of unemployment compensation availability at the time of their separation.

South Carolina

A Notification of the Availability of Unemployment Insurance Benefits must be provided to separating employees by mail, text message, email or in person.

Tennessee

Employees must receive Form LB-0489 from their employer within 1 day of separation, unless they were employed less than a week or will be recalled within a week. Alternatively employers can separately arrange to submit the date and cause of separation electronically, with a mail-in claim or a mass separation notice.

Louisiana Workforce Commission

One state to note that has a statutory requirement is the Louisiana Workforce Commission. Louisiana requires employers to submit form LWC-77 Separation Notice within 72 hours of a worker’s separation and LWC-77 is NOT an unemployment claim. Failure to comply with this policy will result in the prohibition of non-charging to employer’s UI accounts. LWC-77 can be completed online or by filling out the paper form and submitting by fax or mail and must also be sent to the separated employee.

LWC-77 is most applicable when there is base-period claims & chargeability cases. In Louisiana, chargeability cases are based on establishing a disqualifying separation, timely response to the unemployment claim, and Form 77 being submitted to the state & claimant within 72 hours. If we cannot provide proof to all three factors, then the employer will be charged. Since this is not a response to a UI claim and no determination as to UI benefits will be made from this form, the individual that completes the form should list themselves as the contact. Louisiana employers should follow these steps once a worker becomes separated:

  • Submit LWC-77 online or submit via paper form and sign the form
  • Provide a copy of the form and “Instructions to the Worker” to the separated worker
  • Mail the form to the claimant’s verified or last known address, track-able by your mail carrier
  • Copy the envelope you are using to send the form in case any disputes arise during the workforce process
  • Do not request a signature as the package could be denied by the claimant & they wouldn’t receive the form

Stay on Top of Separation Notice Requirements by State

Staying on top of separation notice requirements by state, their regulatory changes and various state required termination letters can be time consuming for an internal HR team or open an organization up to compliance errors with potential penalties. Experian Employer Services offers solutions for unemployment management to increase efficiency and compliance to save money overall.