Final Paycheck Laws by State
This article provides a comprehensive guide to final paycheck laws by state, explaining the timelines and requirements employers must follow when issuing final wages to departing employees. We’ll also explore the differences in laws for voluntary resignations versus terminations, penalties for non-compliance, and why understanding these regulations is crucial for both employees and businesses.
Contents
When an employee leaves a job—whether voluntarily or through termination—one of the most important aspects of the offboarding process is ensuring that they receive their final paycheck in accordance with state laws. The rules governing final paycheck timelines vary widely across the United States, with some states requiring immediate payment upon termination, while others allow employers to issue final wages on the next scheduled payday. For example, in states like California and Colorado, terminated employees must receive their final paycheck immediately, whereas states like Kentucky or Kansas allow payment on the next payday. Understanding these final paycheck laws by state is essential for avoiding legal complications and ensuring compliance with labor regulations. Whether you’re an employee waiting for your last check or an employer navigating payroll obligations, this guide will help clarify the rules and deadlines in different jurisdictions.
What Are Final Paycheck Laws?
Final paycheck laws are state-specific regulations that dictate when employers must issue a departing employee’s last wages. These laws often differ based on whether the employee quit voluntarily or was terminated involuntarily. In addition to wages, some states require employers to include unused vacation pay, bonuses, or commissions in the final paycheck.
Key points include:
- Voluntary Resignation: Employees who quit may have different deadlines for receiving their pay compared to those who are terminated.
- Involuntary Termination: Many states require immediate payment or payment within a very short timeframe.
- Penalties for Non-Compliance: Employers who fail to meet these deadlines may face fines, penalties, or lawsuits.
Overview of Final Paycheck Laws
Immediate Payment States
In states like California, Colorado, and Massachusetts, employers are required to issue final paychecks immediately upon termination:
- California: Final paychecks must be provided on the last day of work if the employee is fired. For resignations with at least 72 hours’ notice, payment is also due on the last day.
- Colorado: Terminated employees must be paid immediately unless payroll is offsite, in which case payment is due within 24 hours.
- Massachusetts: Employers must pay terminated employees immediately; failure to comply can result in treble damages (three times the owed amount).
Next Scheduled Payday States
The majority of states allow employers to issue final paychecks on or before the next regular payday:
- New York: Final wages are due on the next scheduled payday regardless of whether the employee quit or was fired.
- Texas: For voluntary resignations, payment is due on the next payday. For terminations, payment must be made within six days.
- Florida: While there’s no specific state law, most employers follow federal guidelines requiring payment by the next payday.
Complete List of Final Paychecks by State
State | Your Employee Quit | You Fired Your Employee |
---|---|---|
Alabama | No law | No law |
Alaska | Next scheduled payday that’s at least 3 days after the employee gives notice | Within 3 working days of termination |
Arizona | Next scheduled payday | Whichever is first: within 7 working days or next payday |
Arkansas | Next scheduled payday | Next scheduled payday, or within 7 working days if the employee demands it. (Employer will owe 2x the wages if not paid within 7 days of the next scheduled payday.) |
California | Within 72 hours, or immediately if the employee gave at least 72 hours’ notice | Immediately (Employees can recover penalties for every day wages are withheld.) |
Colorado | Next scheduled payday | Immediately |
Connecticut | Next scheduled payday | Next business day |
Delaware | Whichever is latest: Next scheduled payday or 3 days after last day worked | Whichever is latest: Next scheduled payday or 3 days after last day worked |
District of Columbia | Whichever is first: within 7 days or next payday | Next business day |
Florida | No law | No law |
Georgia | No law | No law |
Hawaii | On employee’s last day if employee gives one pay period notice, or scheduled payday | Immediately or next business day |
Idaho | Whichever is first: within 10 days or next payday. If employee provides a written request for earlier payment, employer must pay within 48 hours of receiving the request (weekends and holidays excluded). | Whichever is first: within 10 days or next payday. If employee provides a written request for earlier payment, employer must pay within 48 hours of receiving the request (weekends and holidays excluded). |
Illinois | Immediately if possible, but no later than next scheduled payday | Immediately if possible, but no later than next scheduled payday |
Indiana | Next scheduled payday | Next scheduled payday |
Iowa | Next scheduled payday | Next scheduled payday |
Kansas | Next scheduled payday | Next scheduled payday |
Kentucky | Whichever is later: within 14 days or next scheduled payday | Whichever is later: within 14 days or next scheduled payday |
Louisiana | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days |
Maine | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand |
Maryland | Next scheduled payday | Next scheduled payday |
Massachusetts | Next scheduled payday | Last day of work |
Michigan | Next scheduled payday | Next scheduled payday |
Minnesota | Next payday that’s at least 5 days after an employee’s last day but no more than 20 days after the last day worked | Within 24 hours of demand |
Mississippi | No law | No law |
Missouri | No law | Immediately |
Montana | Whichever is first: next scheduled payday or within 15 days | Immediately (within 4 hours or the end of the same business day) |
Nebraska | Whichever is first: next scheduled payday or within two weeks | Whichever is first: next scheduled payday or within two weeks |
Nevada | Whichever is first: within 7 days or next payday | Within 3 days of termination |
New Hampshire | Next scheduled payday, or within 72 hours if the employee gives one period pay notice | Within 72 hours |
New Jersey | Next scheduled payday | Next scheduled payday |
New Mexico | Next scheduled payday | Within 5 days for fixed amounts or 10 days for variable amounts |
New York | Next scheduled payday | Next scheduled payday |
North Carolina | On or before next scheduled payday | On or before next scheduled payday |
North Dakota | Next scheduled payday | Next scheduled payday |
Ohio | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days |
Oklahoma | Whichever is later: Next scheduled payday or within 14 days | Whichever is later: Next scheduled payday, or within 14 days, whichever is later |
Oregon | On last day of employment if the employee gave 48 hours’ notice, otherwise within 5 days or the next payday, whichever comes first | By the end of the next business day |
Pennsylvania | Next scheduled payday | Next scheduled payday |
Rhode Island | Next scheduled payday | Next scheduled payday |
South Carolina | Within 48 hours or next scheduled payday; not to exceed 30 days | Within 48 hours or next scheduled payday; not to exceed 30 days |
South Dakota | Next scheduled payday, or the employer can hold the final pay until company property is returned | Next scheduled payday, or the employer can hold the final pay until company property is returned |
Tennessee | Within 21 days or the next regular payday, whichever occurs later | Within 21 days or the next regular payday, whichever occurs later |
Texas | Next scheduled payday | Within 6 calendar days of last day worked |
Utah | Next scheduled payday | Within 24 hours |
Vermont | Next scheduled payday or the next Friday if there is no regular payday | Within 72 hours from the time of discharge |
Virginia | On or before next scheduled payday | On or before next scheduled payday |
Washington | On or before next scheduled payday | On of before next scheduled payday |
West Virginia | On or before next scheduled payday | On or before next scheduled payday |
Wisconsin | Next scheduled payday | Next scheduled payday |
Wyoming | Next scheduled payday | Next scheduled payday |
Specific Timeframe States
Some states set hard deadlines for issuing final paychecks:
- Nevada: Final paychecks are due within three days of termination.
- Oregon: Employees who provide 48 hours’ notice must be paid on their last day. Otherwise, payment is due within five days or by the next payday.
- South Carolina: Employers have 48 hours or until the next scheduled payday (not exceeding 30 days) to issue final wages.
What Happens If Employers Don’t Comply?
Non-compliance with final paycheck laws can lead to serious consequences for employers:
- Penalties and Fines: Many states impose financial penalties for late payments. For example:
- In California, employers may owe waiting time penalties equal to one day’s wages for every day the paycheck is delayed (up to 30 days).
- In Oregon, employers may be charged penalty wages equivalent to eight times the employee’s daily rate for each day of delay.
- Lawsuits: Employees can file claims with state labor departments or pursue legal action to recover unpaid wages.
- Reputational Damage: Failure to comply with wage laws can harm an employer’s reputation and affect future hiring efforts.
What Should Employees Know?
If you’re leaving a job:
- Understand Your State’s Laws: Check your state’s specific requirements for final paycheck timelines.
- Request Payment Promptly: If your employer fails to issue your paycheck on time, contact your HR department or file a complaint with your state’s labor office.
- Know What’s Included: In some states, accrued vacation time or bonuses must be included in your final paycheck.
Tips for Employers
- Review State Laws Regularly
Labor laws can change frequently; stay updated to ensure compliance. - Streamline Payroll Processes
Use automated payroll systems to avoid delays in issuing final checks. - Communicate Clearly with Employees
Provide departing employees with clear information about when they’ll receive their final paycheck and what it will include.