Employee Offboarding
What Should Be Included in an Employee Offboarding Checklist?
Employee offboarding is the structured process of managing an employee’s departure—including final pay and PTO payout, benefits termination or COBRA notice, equipment return, and access revocation. Consistent offboarding reduces both compliance and security risk.
On the compliance side: final paycheck timing rules vary by state, unused accrued PTO may be legally required to be paid out, and departing employees generally must receive a COBRA election notice within 14 days if enrolled in group health coverage. On the operational side: revoking system, email, and building access promptly is one of the most overlooked security practices.
A written offboarding checklist covering IT, payroll, HR, and the employee’s manager is the most effective way to make sure nothing is missed. Exit interviews, while not compliance-required, are a low-cost way to surface information about why employees leave.
Employee Offboarding Checklist: COBRA, Final Pay, and Access Deadlines
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COBRA election notice generally must be sent within 14 days of a qualifying event like termination.
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Final paycheck and PTO payout rules vary by state.
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System access revocation is a critical, often-overlooked security step.
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A written, cross-functional checklist reduces the risk of missed steps.
Frequently Asked Questions
How quickly must a COBRA notice be sent after termination?
Generally within 14 days of the qualifying event.
Is paying out unused PTO required during offboarding?
It depends on the state—some legally require payout of accrued, unused PTO.
What's the most commonly overlooked offboarding step?
Promptly revoking system, email, and building access.
Who is responsible for revoking a departing employee’s system access?
IT and HR should coordinate closely, ideally disabling logins, email, and building access on the employee’s last day to reduce data security risk.
Are exit interviews required by law?
No—exit interviews are optional, but many employers use them to uncover retention issues and improve future onboarding and management practices.
Related terms: Final Paycheck Rules, COBRA Continuation Coverage, Employee Onboarding Process