I was told that before my employee receives a final check she needs to sign a release form is that correct?
No. Not only is that incorrect, it is unlawful to condition a final paycheck on the signing of a release. Your employee is entitled to a final check that includes all of her pay, including any accrued and unused vacation time, within 72 hours of her resignation. If she gave you three or more days notice of her resignation before her last day of work, her final paycheck is due on her last day of work.
If you think your employee has claims against you, or may assert claims even if there is no basis for them, you can offer her additional compensation in return for a release of any and all claims she may have. However, that offer has to be separate from payment of her final check, which must be made without any conditions.
You need to get quick, confidential advice. If you refuse to provide a final check unless the employee signs a release you will be sued, plain and simple.
Good luck to you.
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