Final paycheck laws by state: A guide for US employers

When an employee leaves your company — whether by resignation, termination, or layoff — ensuring timely and accurate final payment is not just good practice; it's a legal requirement.

However, final paycheck laws vary significantly across the US, and non-compliance can lead to penalties, interest accruals, and damage to your company's reputation.

In this guide, we’ll provide state-by-state information on final paycheck laws, helping you get a better understanding of what is required of your business. So let’s jump straight in.

What does federal law say?

There is no federal law that specifically governs when final paychecks must be issued after an employee leaves a job, whether through resignation or termination. There are a few important federal guidelines that employers must follow, though.

For instance, the federal Fair Labor Standards Act (FLSA) states that payment must be made on the next regular payday for the period in which the work was performed. 

What are your final paycheck obligations?

Before delving into state-specific laws, it's essential to understand the general obligations employers have regarding final paychecks. These include:

• Timing. Many states require final paychecks to be issued within a specific timeframe, which can vary depending on whether the employee resigned or was terminated.

• Payment method. Final wages must be paid in the same manner as regular wages unless the employee requests otherwise.

• Included compensation. Final paychecks should include all earned wages up to the point of separation, including any overtime. In most states, this also includes any accrued PTO (if eligible), bonuses, and commissions.

• Deductions. Employers may only make deductions from final paychecks as permitted by law, such as for unreturned company property, and often require written authorization from the employee.

So what are the exact rules for each state?

Final pay laws by state

Here is an overview of the final paycheck laws in each US state, although it’s important to note that you should always confirm with your employment partner or in-house legal team first.

Alabama

There is no specific state law for resignations or terminations; federal law applies (i.e., payment on the next regular payday).

That said, employers must pay out any commissions within 30 days of termination.

Alaska

Both resignations and terminations must be paid by the next regular payday (that is at least three working days after the employee's last day.

Failure to pay on time may result in continued wages up to 90 days.

Arizona

Resignations must be paid on or by the next regular payday. Terminations must be paid within seven working days or the next regular payday (whichever is sooner).

Non-compliance is considered a petty offense.

Arkansas

Both resignations and terminations must be paid by the next regular payday.

If payment is not made within seven days of the due date, the employer owes double the wages.

California

For resignations where 72 hours' notice is given, final wages are due at the time of quitting. Otherwise, they are due within 72 hours.

Terminations must be paid immediately.

Colorado

Resignations must be paid on or by the next regular payday. Terminations must be paid immediately (or within 24 hours if your payroll is offsite).

Note that employers may withhold final pay until company property is returned, with written agreement (provided this is outlined in the employment agreement).

Connecticut

Resignations must be paid on or by the next regular payday, and terminations must be paid on or by the next business day.

Delaware

Both resignations and terminations must be paid by the next regular payday, or within seven days — whichever is sooner.

Employers must also provide written notice of any wage deductions.

Florida

There is no specific state law for resignations or terminations; federal law applies (i.e., payment on the next regular payday).

Georgia

There is no specific state law for resignations or terminations; federal law applies (i.e., payment on the next regular payday).

Hawaii

Resignations must be paid on or by the next regular payday, or immediately if the employee has given at least one pay period's notice.

Terminations must be paid immediately (or on the next business day if conditions prevent immediate payment).

Idaho

Both resignations and terminations must be paid by the next regular payday, or within ten working days — whichever is sooner.

Note that, if officially requested by the employee, payment must be made within 48 hours.

Illinois

Both resignations and terminations must be paid at the time of separation, if possible, with payment no later than the next regular payday.

Indiana

Both resignations and terminations must be paid by the next regular payday.

Iowa

Both resignations and terminations must be paid by the next regular payday.

Kansas

Both resignations and terminations must be paid by the next regular payday.

Kentucky

Both resignations and terminations must be paid by the next regular payday, or within 14 days — whichever is later.

Louisiana

Both resignations and terminations must be paid by the next regular payday, or within 15 days — whichever is later.

Maine

Both resignations and terminations must be paid by the next regular payday, or within two weeks if the employee demands payment.

Maryland

Both resignations and terminations must be paid by the next regular payday.

Massachusetts

Resignations must be paid by the next regular payday, or by the following Saturday if there is no regular payday.

Terminations must be paid immediately upon termination.

Michigan

Both resignations and terminations must be paid by the next regular payday.

Minnesota

For resignations, final wages are due on the next scheduled payday (that is at least five days after the employee's last day of work). If the next payday is within five days, payment can be made on the subsequent payday, but no later than 20 days after the last day worked.

For terminations, final wages must be paid within 24 hours of the employee's written demand for payment.

Note that if you fail to pay the final wages as required, your employee may recover one day's average wages for each day the payment is late (up to a maximum of 15 days).

Mississippi

There is no specific state law for resignations or terminations; federal law applies (i.e., payment on the next regular payday).

Missouri

There is no specific state law for resignations; federal law applies (i.e., payment on the next regular payday).

However, terminations must be paid immediately.

Montana

Resignations are due on the next regular payday, or within 15 days of separation — whichever is sooner.

Terminations must be paid immediately (within four hours), or by the end of the business day — whichever comes first. This does not apply if the employer has a preexisting written policy stating otherwise.

Nebraska

Both resignations and terminations must be paid by the next regular payday, or within two weeks — whichever is sooner.

Nevada

Resignations are due on the next regular payday, or within seven days of separation — whichever is sooner.

Terminations must be paid within three days.

New Hampshire

Resignations are due on the next regular payday. Terminations must be paid within 72 hours.

New Jersey

Both resignations and terminations must be paid by the next regular payday, or within two weeks — whichever is sooner.

Note that, under state law, employers who fail to issue final paychecks on time may be liable for unpaid wages plus damages.

New Mexico

Resignations are due on the next regular payday.

If wages are a fixed and definite amount, terminations must be paid within five days of discharge. Task, piece, and commission wages must be paid within ten days of discharge.

New York

Both resignations and terminations must be paid on or by the next regular payday.

North Carolina

Both resignations and terminations must be paid on or by the next regular payday.

North Dakota

Both resignations and terminations must be paid on or by the next regular payday.

Ohio

Both resignations and terminations must be paid by the next regular payday, or within 15 days — whichever is sooner.

Note that, under Ohio’s Prompt Pay Act, intentional delays can result in liquidated damages of up to 6% of the unpaid wages (up to a maximum of $200).

Oklahoma

Both resignations and terminations must be paid on or by the next regular payday.

Oregon

For resignations with at least 48 hours' notice, final wages are due on the last working day. If less than 48 hours' notice is given, wages are due within five business days (or by the next regular payday — whichever comes first).

Terminations are due by the end of the next business day.

Pennsylvania

Both resignations and terminations must be paid on or by the next regular payday.

Rhode Island

Both resignations and terminations must be paid on or by the next regular payday.

South Carolina

Both resignations and terminations must be paid within 48 hours, or by the next regular payday (not exceeding 30 days).

South Dakota

Both resignations and terminations must be paid on or by the next regular payday.

Tennessee

Both resignations and terminations must be paid on or by the next regular payday.

Texas

Resignations are due on the next regular payday. Terminations must be paid within six calendar days from the date of separation.

Utah

Resignations are due on the next regular payday. Terminations must be paid within 24 hours of the separation.

Vermont

Resignations are due on the next regular payday (or, if there is no scheduled payday, the Friday following the date of separation).

Terminations must be paid within 72 hours of the separation.

Virginia

Both resignations and terminations must be paid on or by the next regular payday.

Washington

Both resignations and terminations must be paid on or by the next regular payday.

West Virginia

For resignations where the employee has provided at least one pay period’s notice, final wages are due immediately. If not, payment is due on or by the next regular payday.

Terminations must be paid within 72 hours of the separation.

Wisconsin

For both resignations and terminations, final wages must be paid no later than the date the employee would have been paid under your regular payroll schedule.

Wyoming

Both resignations and terminations must be paid on or by the next regular payday.

How can Remote help?

Ensuring that you offboard employees compliantly can be extremely tricky — especially if you have team members in multiple states or even countries. As well as adhering to final paycheck laws, you also need to be aware of multiple local termination, severance, and notice laws.

That’s why it’s recommended to work with an experienced and trusted employment partner, like Remote. We take on all the legal heavy lifting for you, and help make sure you are taking the correct steps at every stage of the employment lifecycle — saving you time, money, and countless compliance headaches.

This includes making sure that final wages are calculated accurately and delivered within the legal timeframe.

To learn more about how Remote can make life simpler for your business, speak to one of our friendly experts today.