District of Columbia — Termination

The District of Columbia follows the common-law at-will employment doctrine. Under this rule, employment is presumed to be terminable by either the employer or the employee at any time, for any lawful reason or no reason, unless a contract or statute provides otherwise or a public policy exception applies. The D.C. Court of Appeals has recognized that public policy exceptions to the at-will doctrine may apply in narrow circumstances specified by statute, regulation, or constitutional provision.

Source: Carl v. Children's Hosp., 702 A.2d 159, 163 (D.C. 1997)

District of Columbia law imposes different deadlines for final wage payment depending on whether the separation is employer-initiated (discharge) or employee-initiated (resignation or quit), with an additional carve-out for employees who handle the employer's money.

Involuntary termination (discharge)

When an employer discharges an employee, D.C. Code § 32-1303(1) requires the employer to pay all wages earned no later than the working day following the discharge. This is a hard one-business-day deadline; the statute does not permit deferral to the next regular payday.

Exception for employees responsible for employer funds

The statute recognizes that employees who handle cash, process deposits, or otherwise account for the employer's money may need their accounts reconciled before final payment. For these employees, the employer is allowed 4 days from the date of discharge or resignation to determine the accuracy of the employee's accounts, at the end of which time all wages earned must be paid. This 4-day window applies to both discharges and resignations when the employee is responsible for monies belonging to the employer.

Voluntary separation (resignation or quit)

When an employee quits or resigns—and does not have a written contract of employment for a period in excess of 30 days—the employer must pay wages due by whichever comes first:

• the next regular payday designated under D.C. Code § 32-1302, or
• 7 days from the date of quitting or resigning.

In practice, if the employer pays biweekly and the employee resigns 10 days before the next payday, the 7-day rule controls and the employer must pay within 7 days. If the employee resigns 3 days before the next payday, the next-payday rule controls.

Penalties for noncompliance

An employer who fails to pay wages as required under § 32-1303 is liable for liquidated damages equal to 10% of the unpaid wages for each working day the failure continues after the payment deadline, capped at an amount equal to the total unpaid wages (whichever is smaller). The penalty clock stops if the employer files for bankruptcy and is subsequently adjudicated bankrupt.

Collective bargaining agreements

The statutory deadlines apply "[u]nless otherwise specified in a collective agreement between an employer and a bona fide union representing his employees." Unionized employers may negotiate different final-paycheck timelines in the CBA.

What counts as "wages"

D.C. Code § 32-1301(3) defines "wages" broadly to include all monetary compensation earned, including salary, commissions, bonuses, and the monetary value of fringe benefits. Under D.C. common law, accrued but unused vacation time is treated as earned wages and must be paid at separation unless an express written policy provides otherwise (NRA v. Ailes, 428 A.2d 816, 819 (D.C. 1981)). The D.C. Office of Wage-Hour FAQ confirms that employers must pay out accrued, unused vacation in the absence of an express agreement to the contrary.

Source: D.C. Code § 32-1303 Source: D.C. Code § 32-1301 Source: D.C. Office of Wage-Hour FAQs