Managing payroll means juggling numerous responsibilities, but when issuing final paychecks, there’s no room for error. A single mistake can lead to significant legal and financial consequences. In the United States, both state and federal laws set clear guidelines, and these rules can differ depending on whether the employee was terminated or resigned.
This guide will detail final paycheck laws by state, including deadlines and required inclusions based on how you and your employee part ways. Understanding these rules can help your business avoid penalties and uphold HR best practices.
Final paycheck laws by state
When an employment relationship ends, employers must follow final paycheck laws to maintain goodwill and comply with legal standards. State regulations define the deadlines and contents of final paychecks, including wages, leave, and deductions. Some states, known as “immediate pay states,” require payment of final wages upon issuing a letter of termination.
Below are the specific rules for each state, providing a quick reference to help your business stay compliant and avoid legal complications during employee offboarding.
Alabama
- Fired or quit: There is no specific state law governing final paychecks.
Alaska
- Fired: The employee must be paid within three working days after termination.
- Quit: Payment is due on the next payday that occurs at least three working days after your last day of work.
Arizona
- Fired: Paycheck is due within seven working days or by the next payday, whichever is sooner.
- Quit: The final paycheck for terminated employees is due on the next regular payday.
Arkansas
- Fired: Final wages are due by the next regular payday.
- Quit: No specific state law.
California
- Fired: Wages must be paid immediately upon termination.
- Quit: The final paycheck is due within 72 hours unless 72 hours’ notice is given, in which case it’s due immediately.
Colorado
- Fired: Wages must be paid immediately. If the payroll office is closed, they must be paid in the first six hours of the next business day. Employers have 24 hours if payroll is offsite.
- Quit: Payment is due on the next scheduled payday.
Connecticut
- Fired: Payment is due on the next business day.
- Quit: The final paycheck is due on the next scheduled payday.
Delaware
- Fired or quit: Paycheck is due on the next scheduled payday.
District of Columbia
- Fired: Final payment is due on the next business day.
- Quit: Payment is due on the next scheduled payday or within seven days, whichever is sooner.
Florida
- Fired or quit: There is no specific state law for the final paycheck for either scenario.
Georgia
- Fired or quit: There is no specific state law for the final paycheck for either scenario.
Hawaii
- Fired: Final wage is due immediately or the next business day if conditions prevent immediate payment.
- Quit: The employee must be paid by the next scheduled payday or immediately if the employee gave at least one pay period’s notice.
Idaho
- Fired or quit: Payment is due on the next scheduled payday or within 10 business days, whichever is first. Upon written request, payment must be rendered within 48 hours.
Illinois
- Fired or quit: Wages are due by the next scheduled payday.
Indiana
- Fired or quit: The final paycheck is due within 10 days of the next scheduled payday.
Iowa
- Fired or quit: The departing employee must be paid by the next regular payday.
Kansas
- Fired or quit: Paycheck is due on the next scheduled payday.
Kentucky
- Fired or quit: Final wages are due on the next scheduled payday or within 14 days, whichever is later.
Louisiana
- Fired or quit: The final paycheck is due on the next scheduled payday or within 15 days, whichever comes earlier.
Maine
- Fired or quit: The last pay is due on the next scheduled payday.
Maryland
- Fired or quit: Final wages are due by the next scheduled payday.
Massachusetts
- Fired: Wages must be paid by their last day of work.
- Quit: The employee will get paid on the next scheduled payday or by the following Saturday if there is no scheduled payday.
Michigan
- Fired or quit: Wages are due by the next scheduled payday.
Minnesota
- Fired: Wages must be paid within 24 hours.
- Quit: The final paycheck is due on the next payday that’s more than five days away or within 20 days, whichever is first.
Mississippi
- Fired or quit: There is no specific state law for the final paycheck for either scenario.
Missouri
- Fired: Wages must be paid immediately.
- Quit: No specific state law.
Montana
- Fired: Paycheck must be given immediately unless a written policy extends this to the next payday or within 15 days, whichever is first.
- Quit: Employees who resign are paid on the next scheduled payday or within 15 days, whichever comes first.
Nebraska
- Fired or quit: Wages are due on the next scheduled payday or within two weeks, whichever occurs first.
Nevada
- Fired: Wages must be paid immediately.
- Quit: The final payment must be paid on the next scheduled payday or within seven days, whichever occurs first.
New Hampshire
- Fired: Wages are due within 72 hours.
- Quit: Wages are due on the next payday or within 72 hours if the employee has given notice of at least one pay period.
New Jersey
- Fired or quit: Paycheck is due on the next scheduled payday.
New Mexico
- Fired: Wages must be paid within five days.
- Quit: Payment is due on the next scheduled payday.
New York
- Fired or quit: Wages are due by the next scheduled payday.
North Carolina
- Fired or quit: Paycheck is due on the next scheduled payday.
North Dakota
- Fired or quit: Wages are due by the next scheduled payday.
Ohio
- Fired or quit: Wages for the first half of the month are due on the first day of the following month. Wages for the second half of the month are due on the 15th day of the following month.
Oklahoma
- Fired or quit: Paycheck is due on the next scheduled payday.
Oregon
- Fired: Paycheck must be given by the end of the next business day.
- Quit: The final paycheck must be paid immediately if the employee provides 48 hours’ notice. Otherwise, it’s due within five days or by the next payday, whichever is first.
Pennsylvania
- Fired or quit: Final wages are due by the next scheduled payday.
Rhode Island
- Fired or quit: Paycheck is due on the next scheduled payday.
South Carolina
- Fired or quit: Paycheck is due within 48 hours or by the next scheduled payday (at most 30 days later).
South Dakota
- Fired or quit: Wages are due on the next scheduled payday but may be withheld until the employee returns any company property in their possession.
Tennessee
- Fired or quit: Wages are due on the next scheduled payday or within 21 days, whichever is later.
Texas
- Fired: Wages must be paid within six calendar days.
- Quit: Payment is due on the next scheduled payday.
Utah
- Fired: Wages must be paid within 24 hours.
- Quit: The final paycheck must be paid on the next scheduled payday.
Vermont
- Fired: Wages must be paid within 72 hours.
- Quit: The final payment must be paid on the next scheduled payday or the following Friday if no payday is scheduled.
Virginia
- Fired or quit: Wages are due by the next scheduled payday.
Washington
- Fired or quit: Wages are due by the next scheduled payday.
West Virginia
- Fired or quit: Wages are due by the next regular payday.
Wisconsin
- Fired or quit: Final wages are due by the next scheduled payday.
Wyoming
- Fired or quit: Paycheck is due on the next regular payday.
Stay compliant, no matter where you operate
Legal compliance can be challenging when handling remote teams. Oyster simplifies this process with built-in compliance, localized knowledge and insights, and in-house legal expertise. Let Oyster handle regional payroll regulations so you can focus on running your business.
FAQs
When is an employee legally entitled to receive their final paycheck?
Employees are legally entitled to receive their final paycheck according to the state’s specific regulations where they are employed. The timeline may depend on whether the employee was fired or resigned.
What are the most common time frames for issuing a final paycheck?
The time frames for issuing a final paycheck vary widely by state but typically range from immediately upon termination to the next scheduled payday or within a set number of days. Refer to the list above for specific rules applicable to each state.
What states require severance pay?
No specific state or federal labor laws mandate severance pay. However, employers may choose to offer severance pay agreements.
Can employers withhold pay from a final paycheck?
No, employers can’t withhold unpaid wages from a final paycheck unless there is a lawful reason, such as tax deductions or a court-ordered garnishment. The Fair Labor Standards Act (FLSA) protects employees against unauthorized payroll deductions to ensure they receive all their wages. Any deductions—such as for uniforms, retirement plans, or other employment-related expenses—must be agreed upon in the employee’s contract.
If you believe your wages have been unfairly withheld or you have been subject to unfair dismissal, you may have additional rights and protections. Contact the Department of Labor’s Wage and Hour Division or your state labor department to file a complaint and seek help in recovering your unpaid wages.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
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