Does anyone know if there is anything in writing regarding letting an employee go immediately with pay when a two week notice is given?

It is the employer's option. The employer may not want the employee around if it might create a stressful situation with other employees. The employee may or may not receive pay-in-lieu of notice if released immediately; again the employer's option.

I think it is dependent upon your personnel policies and your state law. Texas, for instance, is an employment at will state. In many cases, when someone gives notice, we let them go at that time...just depends upon the circumstances. We spell out in our personnel policy the circumstances under which we will and will not compensate the employee for unused vacation pay, if any.

Are employers required to cash out accrued sick pay when an employee leaves under any circumstances?

The simple answer is no. Normally, employers will provide cash out on unused sick leave if the employee resigned. If the employee was terminated for any reason, then they would forfeit the unused sick leave. This should be in a written policy to prevent the ex-employee from filing a wage complaint for unpaid benefits.

I've never worked for a company that cashed out unused sick leave.

Ditto, Risk Officer. The bank I currently work for has a clause in the HR Manual that we also won't get paid our unused vacation time if we go to work for another financial institution.

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The bank I currently work for has a clause in the HR Manual that we also won't get paid our unused vacation time if we go to work for another financial institution.

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It may say it, but enforcing it in court may be another thing. Check with state employment department they can provide information on legality of that. Are employees also required to sign a no compete clause in an employment agreement?

Most employees don't sign any type of non-compete agreement. Some of our loan officers and all execs do have contracts that have the non-complete clause.

As others have said, it depends on your state requirements as well as your bank practice. Otherwise, you are not obligated to keep the employee on staff, but it is general practice to pay the employee for the two-weeks notice.

Part of the consideration should be if the employee appears to harbor ill will towards the bank, if that is the case and the employee is in a position where they could possibly create a risk situation, I would let them go. For example, a teller who has access to money, a wire transfer clerk, maybe even a lender, or a computer programmer.

I haven't seen anyone mention the fact that having an employee hang around for two weeks bragging to the rest of the staff and customers about how going to work for your competitor is so much better can be a problem.

Once notice is given, and unless there are some mitigating circumstances IMO cut them loose.

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maybe even a lender

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Maybe? I've left two banks, both times in a position as a lender. Each time I'd cleaned out my office prior to giving notice, as I expected to be walked to the door the second I mentioned I was going to a competitor. Not because I was a bad person, or I'd brag about the new job...but because my clients would be asking...what ya doing? where ya going? It would be two weeks free prospecting for my new employer, on the old employers dime.

I'm shocked when banks allow staff who are going elsewhere to give two weeks notice and actually work them for two weeks. While most folks are ethical, there is no way to deal with your clients without their learning about the move in an ethical manner. I wouldn't sit infront of a client and promise to "be there" for them when I knew I wouldn't be there.

I've always been paid the full two weeks pay and been escorted to the door. It's really the only reasonable way to go if the person leaving is staying in banking anywhere near their existing position.

When I gave my two weeks notice, I worked for the two weeks and let them know that if they needed me for a third week I would be there. When I left my job, I was told that if I ever wanted to return, just let them know. (I miss that place. )

Another employee that left had given her notice, was let go immediately and received pay.

My bank does not pay for unused sick time. Sick time is a benefit, not an entitlement.