Present law authorizes an employee to designate a beneficiary to receive payment for any wages or salary due such employee at the time of the employee's death. However, if the employee fails to designate such beneficiary, then the employer must pay out such wages and salary according to the following:  A sum not exceeding $10,000 is authorized to be paid directly to the surviving spouse of a decedent.  If there is no surviving spouse, then such sum is authorized to be paid directly to the surviving children of the decedent as tenants in common, as follows: (i) by an employer any wages or other compensation owed a deceased employee at the time of the employee's death; (ii) by any other person owing, or holding funds for, a decedent if six months have passed since the decedent's death without application having been made for the appointment of a personal representative. However, if such funds exceed $10,000, the excess must be paid to the personal representative or as otherwise ordered by the court. This bill removes the above provisions relative to when a beneficiary has not been designated and, instead, requires, an employer to pay any wages or other compensation owed a deceased employee at the time of the employee's death directly to the surviving spouse of a decedent or, if there is no surviving spouse, to the surviving children of the decedent as tenants in common. If six months have passed since the decedent's death without an application being made for the appointment of a personal representative, then a person other than an employer owing or holding funds for a decedent is authorized to pay a sum not exceeding $10,000 directly to the surviving spouse of a decedent or, if no surviving spouse exists, to the surviving children of the decedent as tenants in common. However, if such funds exceed $10,000, then the excess must be paid to the personal representative or as otherwise ordered by the court. Additionally, all sums paid pursuant to this bill must be charged against the elective share, homestead allowance, and year's support allowance as applicable. If a person entitled to receive payment under this bill is a minor, then the sum must be paid to the guardian or custodian for the minor's benefit.

Statutes affected:
Introduced: 30-2-103(b), 30-2-103