An employee’s death can be a shock to any organization, even if the death was expected. While dealing with their own shock and grief, management must show leadership during the situation. This article outlines legal and practical considerations for addressing an employee’s death.
Immediate Measures
If an employee dies at work, immediately notify police and the employee’s emergency contact. Secure the scene until authorities can conduct any necessary investigations. If the death is work-related, such as a workplace accident, you must notify OSHA within eight hours and must also notify your workers’ compensation carrier. Designate one or two members of upper management to handle these immediate actions.
While not legally required, when an employee dies at work, it is appropriate to allow coworkers to go home or spend time together on premises to process the situation, without loss of pay or benefit time. If this cannot be done, employers should allow as much latitude as possible in the situation. Remember that Connecticut employers with 11 or more employees (one employee as of January 1, 2027) must allow the use of sick leave for a mental health wellness day.
Next Steps
Supporting employee mental health is crucial for weathering a workplace crisis. If you have an employee assistance program (“EAP”), remind all employees that it is available to support them. You can also contact the EAP provider and ask about onsite group counseling services. Even if you do not regularly contract with an EAP, some offer à la carte services for situations like this. When our clients have contacted us for assistance in managing an employee death or other crisis, we have been able to locate à la carte services to provide group counseling within days after the loss, which they have found extremely valuable.
Management should also consider support to the family of the deceased employee. This may include flowers, charitable contributions, financial assistance, and attendance at memorial services. Employees should be allowed time off, preferably without use of benefit time, to attend the funeral.
Technical Matters
Final paychecks, including any paid time off distributions, should be paid to the estate or beneficiary. This should be done by check, as direct deposit accounts are typically frozen quickly after a death.
If the payment is made the same year the employee dies, withhold social security and Medicare and report them only as social security and Medicare on the W-2. Do not show the payment in box 1 on the W-2. You must also report the payment to the estate or beneficiary on 1099-MISC box 3. You will need a W-9 showing the Social Security Number of the beneficiary or a W-9 from the estate.
Notify plan administrators for other employee benefits, such as group health or retirement accounts, and coordinate with them to end the employee’s participation in these programs. Provide COBRA notices as appropriate. Remind the family of any life insurance benefits that may be available and assist them in filing a claim, as needed.
Moving Forward
Recovering from a loss is a process. Provide ongoing support to employees who need it. While it may be uncomfortable, it is necessary to fill the position or restructure as needed to ensure that work is completed.
The labor and employment attorneys at Berchem Moses provide compassionate, timely, and practical advice in addressing the most challenging workplace situations. Please contact us if we can be of assistance.
Share this post
