The End of the Road: A Compliance Protocol for Campaign Layoffs and Terminations
You asked: We just lost the primary (or fired a bad Field Director). Do I just cut them a check on the next normal payday?
The direct answer is probably not. Depending on the state, waiting until the “next payday” could result in fines equal to 30 days of wages.
Termination is the ugly side of politics. Whether it is a single termination for cause mid-cycle, or the inevitable mass layoff the day after Election Day, how you handle the exit is just as legally dangerous as how you handle the hiring.
Campaigns are unique beasts: they scale up rapidly and shut down abruptly. This volatility makes them prime targets for Department of Labor complaints regarding campaign staff termination procedures.
The “Final Paycheck” Trap: Speed Kills
The most common error Campaign Treasurers make is assuming the federal standard applies everywhere. It does not. State laws dictate when a terminated employee must be paid, and they vary wildly.
- The “Immediate” States: In states like California, Massachusetts, and Colorado, if you fire an employee, you must hand them their final paycheck (including accrued vacation time) immediately—often on the spot or within 24 hours.
- The Consequence: If you fire a Field Organizer in California on Tuesday and wait until the regular Friday payroll to pay them, you may owe them a “waiting time penalty” equal to their daily wage for every day the check is late (up to 30 days).
- The Fix: You need a payroll provider capable of cutting off-cycle “termination checks” instantly, not one that requires a 3-day lead time.
The “Win Bonus” and Gross-Ups
If your candidate wins, you might offer “Win Bonuses” to the staff. This is a great morale booster, but a payroll headache.
- The Issue: You promise a staffer a “$1,000 Bonus.” If you process this as normal wages, they receive roughly $700 after taxes. The staffer feels short-changed.
- The Solution: Decide in advance if the bonus is Gross (we pay $1,000, taxes come out) or Net (staffer receives $1,000 in hand). If it is Net, you must perform a “Gross-Up” calculation, meaning the campaign pays the employee’s tax burden. This significantly increases the cost to the campaign (see our Budget Calculator guide), so plan accordingly.
Unemployment Claims: The Post-Election Flood
On November 6th, your campaign might lay off 50 people. By November 10th, your campaign address will receive 50 unemployment claim notices.
- Don’t Ignore Them: Even if the campaign is shutting down, the legal entity (the Committee) is still liable. Ignoring these claims can lead to maximum tax rates if the candidate runs again in two years.
- The “For Cause” Distinction: If you fired a staffer mid-cycle for misconduct (e.g., stealing data, not showing up), you must contest the unemployment claim. If you simply “laid them off” because the election ended, they are eligible.
- AccuPay’s Role: We act as the buffer, managing the influx of state separation notices so your Treasurer isn’t buried in paperwork while trying to close the books.
Operational Security: The Offboarding Checklist
Termination is not just about money; it’s about data. A disgruntled former staffer with access to NGP VAN or the donor database is a security threat.
The “Kill Switch” Protocol:
- Revoke Tech Access: Remove email, Slack, NGP VAN, and ActBlue access before the termination meeting begins.
- Asset Recovery: Do not issue the final reimbursement check until the campaign laptop, iPad, and credit card are returned.
- Expense Reconciliation: Require the staffer to submit all outstanding receipts immediately. You cannot close the FEC report if you have “unitemized credit card expenses” floating in the void.
How AccuPay Manages the Exit
When the campaign ends, you are exhausted. You want to sleep, not calculate vacation payouts.
AccuPay Systems manages the winding down process for you. We handle the complex “final pay” calculations for multi-state teams, ensuring the staffer in California gets paid instantly while the staffer in Texas is paid on schedule. We generate the mass separation documents required for unemployment offices and ensure your final quarterly tax filings are pristine, allowing you to terminate the committee with the FEC cleanly.
Whether you are popping champagne or packing boxes, let us handle the paperwork.