The final paycheck, often called a full and final settlement, is the last wage and benefit an employee receives when they are offboarded.
It is of utmost importance because it can have a lasting impression on how former employees reflect on their employment.
The final paycheck rules vary by state; however, employers must have a comprehension of all the rules to stay compliant.
Some states require employers to pay the final paychecks immediately on the date of termination. At the same time, others permit payment on the next regular scheduled payroll.
Let’s explore final pay laws by state. So, you can comply with the rules with confidence.
What are Final Paycheck Laws?
Final paycheck laws are state and federal regulations that set strict requirements for employers to pay departing employees their earned wages, unused leave, and other benefits.
These laws established a timeframe within which employers are required to clear the last paycheck of a departing employee.
Note: Federal law under the Fair Labor Standards Act (FLSA) requires all employers to pay the wages of employees for all time worked. Nevertheless, there is no specific deadline for final paycheck distribution.
Understanding Final Paycheck Laws by State
This table covers all 50 states and lists the specific requirements by state for the final paycheck for a terminated employee.
These are the minimum requirements, the employer can always choose to pay sooner (monthly or weekly payroll).
| State | Voluntary Resignation | Termination |
| Alabama | No state law — next regular payday | No state law — next regular payday |
| Alaska | Next scheduled payday that is at least 3 working days after the notice | Within 3 working days of termination |
| Arizona | Next scheduled payday | Within 7 working days or next scheduled payday (whichever comes first) |
| Arkansas | Next scheduled payday or will pay double wages if not completed within 7 days of payday | Next scheduled payday or will pay double wages if not completed within 7 days of payday |
| California | In the next 72 hours; immediately if an employee gives 72 hours’ notice | Right after the termination |
| Colorado | Next scheduled payday | Immediately |
| Connecticut | Next scheduled payday | Next business day |
| Delaware | Next regular payday or 3 days after the last day (whichever is later) | Next regular payday or 3 days after the last day (whichever is later) |
| District of Columbia | Next regular payday or within 7 days of resignation (whichever is earlier) | Next business day |
| Florida | No law (FLSA baseline) | No law (FLSA baseline) |
| Georgia | No law (FLSA baseline) | No law (FLSA baseline) |
| Hawaii | Immediately, if the employee is giving one day’s notice. Or the next payday | Immediately or the next working day |
| Idaho | Next payday or within 10 business days (whichever is earlier) | Next payday or within 10 business days (whichever is earlier) |
| Illinois | If possible (immediately) or no later than next payday | If possible (immediately) or no later than next payday |
| Indiana | Next scheduled payday | Next scheduled payday |
| Iowa | Next scheduled payday | Next scheduled payday |
| Kansas | Next scheduled payday | Next scheduled payday |
| Kentucky | Next payday or 14 days after the last day (whichever is later) | Next payday or 14 days after the last day (whichever is later) |
| Louisiana | Next payday or within 15 days (whichever is earlier) | Next payday or within 15 days (whichever is earlier) |
| Maine | Next scheduled payday | Next scheduled payday |
| Maryland | Next scheduled payday | Next scheduled payday |
| Massachusetts | Next scheduled payday | On the last day of the work |
| Michigan | Next scheduled payday | Next scheduled payday |
| Minnesota | Next payday (at least after five days but no more than 20 days) | Within 24 hours of demand |
| Mississippi | No law | No law |
| Missouri | No law | Immediately |
| Montana | Next payday or within 15 days (whichever is earlier) | Immediately (within 4 hours or the end of the same business day) |
| Nebraska | Next payday or within 2 weeks (whichever is earlier) | Next payday or within 2 weeks (whichever is earlier) |
| Nevada | Next payday or within 7 days (whichever is earlier) | Within 3 days of termination |
| New Hampshire | Next scheduled payday (or within 72 hours if employee gives one period pay notice) | Within 72 hours of termination |
| New Jersey | Next scheduled payday | Next scheduled payday |
| New Mexico | Next scheduled payday | 5 days (if the wages are fixed); 10 days (if the wages vary) |
| New York | Next scheduled payday | Next scheduled payday |
| North Carolina | Next scheduled payday | Next scheduled payday |
| North Dakota | Next payday or within 15 days (whichever is earlier) | Next payday or within 15 days (whichever is earlier) |
| Ohio | Next payday or within 15 days (whichever is earlier) | Next payday or within 15 days (whichever is earlier) |
| Oklahoma | Next scheduled payday | Next scheduled payday |
| Oregon | On the last day, if 48 hours’ notice is given, or else five business days, or next payday | Next business day |
| Pennsylvania | Next scheduled payday | Next scheduled payday |
| Rhode Island | Next scheduled payday | Next scheduled payday |
| South Carolina | Within 2 days or next regular payday (not to exceed 30 days) | Within 2 days or next regular payday (not to exceed 30 days) |
| South Dakota | Next scheduled payday (can withhold till company property returned) | Next scheduled payday (can withhold till company property returned) |
| Tennessee | Next scheduled payday or within 21 days of the last day (whichever is later) | Next scheduled payday or within 21 days of the last day (whichever is later) |
| Texas | Next scheduled payday | Within 6 calendar days of termination |
| Utah | Next scheduled payday | Within 24 hours of termination |
| Vermont | Next scheduled payday (or next Friday if no regular payday) | Within 72 hours of termination |
| Virginia | Next scheduled payday | Next scheduled payday |
| Washington | On or before the next scheduled payday | On or before the next scheduled payday |
| West Virginia | Next scheduled payday | Within 72 hours of termination |
| Wisconsin | Next scheduled payday | Next scheduled payday |
| Wyoming | Next scheduled payday | Next scheduled payday |
Factors Affecting Final Paycheck Timing
If you are asking, “When do I get my last paycheck after quitting?” yourself, read the above table corresponding to your state.
There are a few factors that might affect the final paycheck timing.
- Reason for Offboarding – It is very important, as most states impose shorter deadlines for involuntary terminations than voluntary resignations.
- Accrued Vacation – It depends on your state whether unused vacations are paid or not. If you are in California, Colorado, Montana, Nebraska, or North Dakota, then you will get wages for accrued vacations.
- Commissions and Bonuses – If your commissions and bonuses are due, then the timing of the final paycheck might differ. Because they need to be calculated to determine the final amount.
Related Read: How to Negotiate Salary at the Workplace?
States with No Final Paycheck Laws
Most states in the United States have a final paycheck law, but not all of them.
Four states do not have these laws: Alabama, Florida, Georgia, and Mississippi. Missouri is another state that has a final paycheck law if you are fired, but not if you quit.
In the four states listed above in the article, the final paycheck is settled on the next scheduled payday, no matter whether they quit or are fired. But that doesn’t mean no laws are applied in those states. They are governed by the FLSA’s basic wage payment requirements.
Withholding Final Paycheck
How long can an employer hold your check after termination? It will depend on the final paycheck laws by state.
South Dakota is a state that allows employers to withhold the paycheck until the company property is returned. However, that is an expectation of the final pay laws by state.
In general, the employer cannot withhold your final paycheck or make it conditional. If the employer does not adhere to the final paycheck laws by the state, they can face penalties, or employees can take legal action.
Wrapping Up
As you can see from the table above, the final paycheck laws by state vary. For terminated employees, the strictest states are California, Colorado, Massachusetts, Missouri, Montana, and Utah. All these states require immediate payment.
On the other hand, Oregon and Connecticut also have quick turnarounds by the next business day.
We hope that now you’ve understood these laws perfectly and have a grasp of the final paycheck for terminated employee laws.
Do let us know what you think about this.
FAQs
1. Can an employer place conditions on final paychecks?
Ans: No, employers cannot put conditions on final paychecks or even withhold your wages.
2. Do final paychecks apply to all types of terminations?
Ans: Yes, it is applicable to all types of offboarding, whether you are terminated or resign.
3. Where can I check my state’s final paycheck laws?
Ans: For in-depth information about your state’s final paycheck law, you can check the labor department’s website.
4. How long can a company hold your last paycheck?
Ans: It varies from state to state, but all states have to adhere to FLSA’s basic wage payment requirements. So, most likely, your final paycheck will be given by the next scheduled payday.
- Last Paycheck – U.S. Department of Labor
- State Payday Requirements – U.S. Department of Labor
- Fair Labor Standards Act (FLSA) – Investopedia
