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Flex Account Ends When Employment Ends. When employment is terminated, regardless of the circumstances, you can no longer participate in the company's flexible-spending program, and money in the account cannot transfer to another employer.pending More Than You Contribute. With most flexible spending accounts, funds are available on the first day of the plan year. If you spend the entire balance and leave the company before contributing the total amount agreed, you aren't required to pay back the funds.
Many employers often break these laws out of ignorance, and there can be consequences if your former employee calls you on it. There are often penalties for violating the final paycheck laws, and if a former employee sues you, you could be required to pay for their attorney's fees as well as court costs. In addition to these final paycheck laws, many states also require employers to pay out unused vacation days to departing employees. Although this article will not discuss these laws, you should still be familiar with them. Here is a chart that gives a rundown of each state's final paycheck laws.