I have a simple question. In the state of New Mexico, if an employee gives you their two week notice, and you tell them that they can leave today. Are we obligated to pay them for the two weeks even if we told them they didn’t have to work?

Thanks for reaching out. NM law does not require you pay the two weeks. The laws are silent on this matter. There is no federal law either. NM is an at-will state which allows the employer to terminate as they see fit. However, when terminating before the two weeks is up, the employee may be able to claim unemployment.

Here are a few other things to consider from SHRM:

• If the employer immediately ends the employment relationship, the employee’s resignation would be considered an involuntary separation from the company. This may entitle the employee to unemployment insurance benefits that he or she otherwise would not have been entitled to receive.
• Employers may also want to consider the impact an immediate separation would have on remaining employees. Immediate separation could reinforce poor attitudes toward the company and cause other employees to forego the practice of giving two weeks’ notice of resignation.
• In addition, employers should consider whether company policy requires employees to give two weeks’ notice. If so, an employee could rely on the policy to support a claim for the two weeks’ pay if the employer made the resignation effective immediately.

Here is an attorney article on the subject: