Whether your employee quits or you have to let them go, you are legally obligated to give them a final paycheck. However, the termination paycheck rules vary from one state to another. While some states require you to issue a paycheck as soon as you discharge the employee, others states give you a few weeks to pay your former workers. Because there can be penalties involved in non-payment or late payment, it’s important to learn as much as you can about state-by-state final paycheck laws.
What Are the Federal Termination Pay Rules?
While the Fair Labor Standards Act (FLSA) details many wage-and-hour rules, it does not specifically say when an employee must be given their final paycheck. On a federal level, the United States simply requires workers to be paid on their regular pay dates for the hours worked.
What Are the State-by-State Termination Pay Rules for Final Paychecks?
Although the federal government doesn’t have special final termination paycheck laws, many states do. For example, California generally requires employers to provide workers with their final paycheck at the time they are fired or laid off. In New York, employers just have to pay terminated employees on or before the scheduled payday. To see what the basic termination pay requirements are for your area, find your state on the list below.
Final Wages Deadline If They Are Terminated | Final Wages Deadline If They Quit | |
Alabama | None. | None. |
Alaska | 3 working days after their termination day. | The next payday that’s at least 3 working days after their last day of work. |
Arizona | Within 7 working days or the next payday, whichever happens first. | Within 7 working days or the next payday, whichever is first. |
Arkansas | The next payday. Employers owe double the original amount if the paycheck isn’t paid within seven days of the payday date. | The next payday. |
California | Immediately, except in specific circumstances | Immediately, as long as the employee gave 72 hours notice or more before their last day. If not, then the employer has three days. |
Colorado | Immediately, except in specific circumstances. | The next payday. |
Connecticut | The next business day. | The next payday. |
Delaware | The next payday. | The next payday. |
Florida | None. | None. |
Georgia | None. | None. |
Hawaii | Immediately. If this isn’t possible, then the next business day. | The next payday. If the employee gave at least one pay period’s notice, then the final check is due immediately. |
Idaho | Next payday or after 10 business days, whichever occurs first. If the employee makes a written request after their termination, the employer must pay them within 48 hours, excluding holidays and weekends. | Next payday or after 10 business days, whichever occurs first. If the employee makes a written request after their termination, the employer must pay them within 48 hours, excluding holidays and weekends. |
Illinois | Immediately. If this isn’t possible, then the next regularly scheduled payday. | Immediately. If this isn’t possible, then the next regularly scheduled payday. |
Indiana | Within 10 business days of the regularly scheduled pay date. | Within 10 business days of the regularly scheduled pay date. |
Iowa | The next payday. | The next payday. |
Kansas | The next payday. | The next payday. |
Kentucky | The next payday or 14 days later, whichever date comes last. | The next payday or 14 days later, whichever date comes last. |
Louisiana | The next payday or 15 days after the employee’s last day, whichever happens first. | The next payday or 15 days after the last day, whichever happens first. |
Maine | The next scheduled payday. | The next scheduled payday. |
Maryland | The next payday or earlier. | The next payday or earlier. |
Massachusetts | Immediately, except in specific circumstances. | The next scheduled payday. |
Michigan | Immediately after the amount can be determined with due diligence. | Immediately after the amount can be determined with due diligence. For crop harvesters, no later than three days after the employee voluntarily leaves the company’s employment. |
Minnesota | Once a written demand for pay is provided, the business has 24 hours to issue the paycheck. | The next payday. However, if the next payday occurs within the next 5 workdays, the employer has up to 20 days. |
Mississippi | None. | None. |
Missouri | Immediately. If the employee isn’t paid, they must request their paycheck in writing with a certified letter. Then, the employer has seven days to respond and pay the wages. | Immediately. If the employee isn’t paid, they must request their paycheck in writing with a certified letter. Then, the employer has seven days to respond and pay the wages. |
Montana | Immediately, unless there is a pre-existing, written policy that extends this timeline. In this specific instance, the paycheck may be given at the next scheduled payday or 15 days later, whichever one comes first. | The next payday or 15 days later, depending on which date is first. |
Nebraska | The next payday or within the following two weeks, depending on which one is earlier. | The next payday or within the following two weeks, depending on which one is earlier. |
Nevada | Within the next 3 days. | The next payday or within the following 7 days, depending on which one is first. |
New Hampshire | Within the next 72 hours. | The next payday. If the employee gives their notice at least a pay period earlier, then the paycheck must be given within 72 hours of the employee’s last day. |
New Jersey | The next regular payday. | The next regular payday. |
New Mexico | Within 5 days for most workers. For commission, piece, or task earnings, businesses have 10 days to pay. | Within 5 days for most workers. For commission, piece, or task earnings, businesses have 10 days to pay. |
New York | The next payday. | The next payday. |
North Carolina | On or before the next payday. | On or before the next payday. |
North Dakota | The employee must be paid according to the existing employment agreement at the company. If there isn’t an existing agreement, then the worker must be paid by certified mail. | The next payday. |
Ohio | Ohio doesn’t have specific laws about termination paychecks, but it does have strict rules about when paychecks must be given in general. An employer’s earnings from the first to 15th of the current month must be paid on or before the first of next month. For work performed from the 15th to the 30th, the employee must be paid by the 15th of the next month. | Ohio doesn’t have specific laws about termination paychecks, but it does have strict rules about when paychecks must be given in general. An employer’s earnings from the first to 15th of this month must be paid on or before the first of next month. For work performed from the 15th to the 30th, the employee must be paid by the 15th of the next month. |
Oklahoma | The next payday. | The next payday. |
Oregon | The next business day. | The last employment day if the employee gave at least 48 hours notice. If the employee did not give 48 hours notice, the paycheck must be given within 5 working days or on the next payday, depending on which one comes first. |
Pennsylvania | The next payday. | The next payday. |
Rhode Island | The next payday. | The next payday. |
South Carolina | Within the next 48 hours or on the next payday. However, the paycheck must be given in the next 30 days or less. | Within the next 48 hours or on the next payday. However, the paycheck must be given in the next 30 days or less. |
South Dakota | The next payday. Employers are allowed to withhold the final paycheck until the employee returns all of the employer’s property. | The next payday. Employers are allowed to withhold the final paycheck until the employee returns all of the employer’s property. |
Tennessee | The next payday or in the next 21 days, depending on which option arrives last. | The next payday or in the next 21 days, depending on which option arrives last. |
Texas | Within the next 6 calendar days. | The next payday. |
Utah | Within the next 24 hours. If the employer doesn’t give the employee their paycheck within 24 hours, they must continue paying the employee at the accustomed pay rate until the employee is paid. | Within the next 24 hours. If the employer doesn’t give the employee their paycheck within 24 hours, they must continue paying the employee at the accustomed pay rate until the employee is paid. |
Vermont | Within the next 72 hours. | The next payday or the following Friday. |
Virginia | On or before the next payday. | On or before the next payday. |
Washington | The next payday. | The next payday. |
West Virginia | On or before the next payday. For layoffs, the paycheck is due to the worker on the next regular payday. | On or before the next payday. |
Wisconsin | The next payday. | The next payday. |
Wyoming | The next payday. | The next payday. |
Are You Legally Required To Offer Severance Pay?
In general, American businesses aren’t required to provide severance pay. On a federal level, the United States Department of Labor (DOL) considers severance pay something that should be negotiated between employees and employers. Currently, no states have severance laws in place.
Learn More About the Termination Pay in Your State
Each state has unique final paycheck laws, making compliance challenging for small businesses. These laws are constantly being updated, which is why it’s so important to be proactive about monitoring evolving HR changes. To track ongoing compliance updates, set a Google Alert to monitor “final paycheck law” and your state’s name.
At Asure Software, we stay up to date on all of the latest regulatory reforms. From state-by-state termination paychecks to FLSA salary rules, we can help your company stay in compliance with major HR laws. For more information about how you’re supposed to issue termination pay, reach out to our team of small business payroll and HR experts today.