Late paycheck penalties: A state-by-state guide for employers

Paying employees accurately and on time is a cornerstone of running a compliant and ethical business. But whether due to administrative oversight, cash flow issues, or unexpected delays, even well-meaning employers may find themselves missing a payday.

In the US, this can potentially trigger serious consequences, from financial penalties to reputational damage. And while federal labor law sets some general expectations, the true complexity lies in the patchwork of state-level rules, where penalties vary widely depending on location and circumstances.

In this guide, we’ll break down everything you need to know about late paycheck penalties, including what the law requires, and the consequences in each state. So let’s jump straight in.

First, what is considered a “late” paycheck?

A paycheck is considered late if it’s not delivered to the employee on their scheduled payday. Most states require employers to establish and adhere to a regular payday (e.g., weekly, biweekly, semi-monthly, or monthly), and any delay beyond that date can be considered a wage violation.

Even if the delay is caused by a bank holiday, processing error, or a technology issue, the responsibility still lies with the employer to ensure timely delivery.

What are the consequences of late paychecks?

Late paychecks can have significant consequences, even for small delays. These may include:

1. State-imposed penalties

Most states impose monetary penalties on employers who fail to pay employees on time. These penalties typically include:

• Flat fines per violation
• Daily interest charges or liquidated damages
• Multiple damages (e.g., double or triple the unpaid wages)

In some states, even a one-day delay can trigger financial penalties.

2. Employee lawsuits

Employees may file wage claims or lawsuits, often with the help of state labor departments or attorneys. In many states, employees can recover not just their unpaid wages, but also legal fees, interest, and punitive damages.

3. Reputational risk

Late payments can erode employee trust, affect morale, and harm your employer brand, especially if the issue becomes public.

4. Regulatory investigations

Repeated violations may trigger audits or investigations by state or federal labor agencies, exposing your company to broader compliance scrutiny.

What does federal law say?

The Fair Labor Standards Act (FLSA) does not mandate specific payday schedules; this is typically done at the state level. However, it does require that employees be paid in a "prompt and regular manner" for work performed.

Importantly, federal law sets the floor, not the ceiling. As the employer, you must comply with whichever standard (federal or state) is more favorable to your employees, and in almost every case, state laws are stricter on pay timeliness.

What about state law?

As mentioned, each state has its own laws and enforcement mechanisms when it comes to late paycheck penalties. Some states, like California and New York, have strict penalties with significant financial exposure. Others may offer more flexibility, but all take employee wage rights seriously.

Here’s a state-by-state breakdown:

Late paycheck penalties in Alabama

Alabama does not have state-specific penalties for late or unpaid wages. Instead, employees must rely on federal protections under the FLSA. If wages are withheld, employees can file a claim with the US Department of Labor (DoL), or pursue a private lawsuit for back pay and potential liquidated damages.

Late paycheck penalties in Alaska

If you fail to pay an employee on time as stipulated in the employment agreement, they can potentially sue you for breach of contract. In serious cases, they may even be able to claim constructive dismissal.

For terminated employees, final wages must be paid within three working days. If the employee resigns, wages are due by the next regular payday (which must occur at least three working days after notice of resignation).

If you don’t pay the employee within these timeframes, you may be required to pay the employee their regular wage, salary, or other compensation from the time of demand to the time of payment or for 90 working days (whichever is the lesser amount).

Late paycheck penalties in Arizona

Late or unpaid wages may result in payment of the wages owed, plus potential penalties. Note that there is no grace period in Arizona; even one day late is a violation.

Employees can file claims with the state and, if the claim is upheld, you may be required to pay up to three times the amount owed in cases of willful non-payment.

Late paycheck penalties in Arkansas

If you withhold an employee’s paycheck, they can file wage theft claims with the state. Under Arkansas law, you may receive fines of between $50 and $500 per violation.

If the employee is terminated or resigns, final wages are due by the next regular payday (unless they make a written request and you pay within seven days). Otherwise, double wages may apply.

Late paycheck penalties in California

California has some of the strictest wage laws in the US. If wages are not paid on time, you are liable for penalties and interest on unpaid wages.

These can include waiting time penalties (a daily penalty for each day the wages are unpaid), while employees can also recover attorney’s fees.

Late paycheck penalties in Colorado

If you withhold wages after receiving a written demand and fail to pay within 14 days, your employee can recover their unpaid wages plus a penalty of either double the amount owed or $1,000 (whichever is greater).

Note that if you are found to be willfully withholding wages, the penalty increases to three times the amount owed (up to $3,000). You may also face fines or injunctions for wage theft, which can be prosecuted criminally depending on the amount owed.

Late paycheck penalties in Connecticut

If you fail to pay your employee the wages they’re owed on time, and cannot demonstrate a “good‑faith legal belief”, the court may award them double their unpaid wages, plus court costs and attorney fees. Additionally, civil fines of up to $300 per violation may apply for willful violations.

Late paycheck penalties in Delaware

Under state law, each violation of wage payment provisions can result in civil penalties between $1,000 and $5,000. Employees may also pursue claims through the DoL or in court to recover unpaid wages.

Note that the law further classifies intentional failure to pay as wage theft, which can be referred for criminal prosecution in serious cases.

Late paycheck penalties in Florida

Florida does not have its own statutory penalties for late or withheld pay. Instead, employees rely on the FLSA to recover unpaid wages and may seek liquidated damages for minimum wage or overtime violations, either through the DoL or a private lawsuit.

Late paycheck penalties in Georgia

Employees rely on the FLSA to recover unpaid wages and may seek liquidated damages. The DoL may assess additional fines for willful non‑payment, while the state may also apply administrative penalties for wage violations.

Late paycheck penalties in Hawaii

Under Hawaii state law, failure to pay earned wages within seven days after the end of a pay period can trigger civil or criminal penalties. You may be liable for up to double the unpaid wages (plus interest), as well as fines up to $10,000 per violation. In addition, you may be liable for separate administrative fines.

Late paycheck penalties in Idaho

Idaho law mandates that if final wages are not paid within 10 days (or within 48 hours of a written request), the employee’s wages continue at their regular rate until paid, for up to 15 days. The state may also assess administrative penalties of up to $750.

Late paycheck penalties in Illinois

If you fail to pay your employee on time, you must pay out the unpaid wages plus 5% per month on any underpayment. You may also be liable for additional civil penalties, ranging from $250 to $1,000 per instance, as well as attorney’s fees and costs. In some cases, criminal charges can also apply.

Late paycheck penalties in Indiana

If you fail to pay earned wages in time, your employee may be entitled to a waiting‑time penalty equal to the employee’s daily rate of pay for each day late (up to 30 days). This is in addition to the employee’s unpaid wages, attorney’s fees, and legal costs.

Late paycheck penalties in Iowa

Under Iowa law, employers who fail to pay wages on time may be subject to civil penalties up to $500 per violation. Employees can also recover unpaid wages plus liquidated damages equal to unpaid wages and, in some cases, costs or attorney’s fees. Repeated violations may trigger investigations or audits by the authorities.

Late paycheck penalties in Kansas

If you willfully fail to pay an employee’s wages, you must pay the full amount owed plus a penalty of 1% per day, starting eight days after the wages were due and capped at 100% of the unpaid wages.

Late paycheck penalties in Kentucky

If you fail to pay an employee’s wages, Kentucky law imposes civil penalties of between $100 and $1,000 per offense. As well as the wages owed, you must also pay interest at 10% annually, and may be liable for additional enforcement costs. Note that each unpaid paycheck is treated as a separate offense.

Late paycheck penalties in Louisiana

Under state law, employees may recover up to 90 days’ worth of penalty wages at their regular rate. They may also recover unpaid wages, legal costs, and attorney’s fees.

Late paycheck penalties in Maine

Maine imposes civil fines of between $100 and $500 per unpaid wage violation. Additionally, you may owe the employee up to three times the amount of unpaid wages in appropriate cases.

Late paycheck penalties in Maryland

Under state law, deliberate non‑payment of wages can result in tripled damages (i.e., three times the unpaid amount) plus attorney’s fees. You may also potentially face criminal fines of up to $1,000 per violation if the withholding is intentional and without valid legal justification.

Late paycheck penalties in Massachusetts

Under state law, employers must remit earned wages by the next regular payday (or immediately if they are being terminated). Any delay is treated as a violation.

Like other states, Massachusetts imposes treble damages plus attorney’s fees and costs, with no good‑faith exception for payroll errors.

Late paycheck penalties in Michigan

Under state law, employers who withhold wages may face:

• A 10% annual penalty on unpaid wages (starting from the date the employee files a complaint, and continuing until payment is made)
• Damages up to double the unpaid wages, plus all attorney and hearing costs (for repeated and/or flagrant violations)
• Administrative civil penalties of up to $1,000 per violation
• Criminal action in extreme cases
  
  

Late paycheck penalties in Minnesota

For late paychecks, Minnesota imposes a penalty equal to the employee’s average daily earnings for each day unpaid (up to 15 days).

Late paycheck penalties in Mississippi

Employees that are owed unpaid wages typically invoke FLSA protections in court, seeking back pay, liquidated damages, attorneys’ fees, and legal costs. 

Late paycheck penalties in Missouri

Employees may pursue civil claims to recover late and unpaid wages, but the state doesn’t impose statutory multiplier damages or daily penalties. Such claims usually proceed in small claims or circuit courts.

For terminated employees, wages are due immediately. If they remain unpaid seven days after they have submitted a written request, wages continue to accrue at the same rate from separation until paid (up to 60 days). 

Late paycheck penalties in Montana

Under Montana law, failure to pay wages on time can trigger a penalty of up to 110% of the unpaid wages. You can also potentially face misdemeanor charges and fines for willful violations.

Late paycheck penalties in Nebraska

Under state law, your employees may sue for unpaid wages, as well as liquidated damages if the violations are willful. Courts may also award attorney’s fees and costs.

You may also receive administrative penalties (typically up to $500 for first violations and up to $5,000 for repeat offenses) from the authorities.

Late paycheck penalties in New Hampshire

If you withhold wages willfully and without justification, New Hampshire authorizes a daily penalty of 10% of the unpaid wages (up to 10 days). In addition, the authorities may impose administrative fines ranging from $100 to $2,500 per violation, depending on the amount owed. In persistent or serious cases, criminal charges may even be brought.

Late paycheck penalties in New Jersey

New Jersey enforces strict wage protections, with repeated or willful violations of state law resulting in civil monetary fines of between $1,000 and $2,000 per violation. Criminal charges may even be brought in repeat cases. Employees can also recover unpaid wages and may pursue administrative or judicial claims.

Late paycheck penalties in New Mexico

Under state law, a deliberate failure to pay wages can lead to the recovery of liquidated damages plus interest. The authorities may assess additional civil penalties for willful or repeated violations and, in egregious cases, even misdemeanor charges.

Late paycheck penalties in New York

Employees may recover late and unpaid wages plus 100% liquidated damages, interest, and attorney’s fees. Repeat or intentional violations may trigger civil penalties up to $20,000 per occurrence, and in severe cases, wage theft can be prosecuted criminally as a form of larceny. 

Late paycheck penalties in North Carolina

If wages are unpaid or late, employees can recover the unpaid amount plus liquidated damages, interest, court costs, and attorney fees. The only narrow defense against double damages is proving a good‑faith legal belief.

Late paycheck penalties in Ohio

If wages remain unpaid more than 30 days past the scheduled payday, and there's no bona fide dispute, you may owe liquidated damages of 6% of the unpaid wages (or $200 — whichever is greater).

If the delay is intentional regarding final wages, courts may also award the same liquidated damage amount, as well as the unpaid wages, attorney’s fees, and court costs.

Late paycheck penalties in Oklahoma

Under state law, an employer who willfully withholds wages without a bona fide dispute is liable for liquidated damages equal to 2% of the unpaid wages. This continues for each unpaid day after the due date.

In addition, claims can be filed with the authorities and you may be ordered to pay back wages, administrative penalties, and liquidated damages. You may also possibly face revocation of your business license, or civil injunctions for repeat offenses.

Late paycheck penalties in Oregon

If you willfully fail to pay owed wages, the employee is entitled to penalty wages at the regular rate of pay for eight hours per day until payment (capped at 30 days). In addition, the authorities may impose a civil penalty of up to $1,000, plus interest, legal fees, and other costs. 

Late paycheck penalties in Pennsylvania

If wages remain unpaid beyond applicable deadlines, and there is no valid dispute, you may face a penalty of up to 25% of the unpaid wages (or $500 — whichever is greater). You are also liable for unpaid wages, interest, and potentially costs or fees in a claim. 

Late paycheck penalties in Rhode Island

Employers who knowingly and willfully fail to pay wages exceeding $1,500 may face felony charges, potentially punishable by imprisonment and/or a $5,000 fine.

For lesser violations, civil liability includes unpaid wages plus liquidated damages up to twice the unpaid amount, as well as administrative fines, interest, and the risk of business license revocation. 

Late paycheck penalties in South Carolina

Employees may recover unpaid wages through civil action, plus triple damages, costs, and attorney’s fees. Under state law, each paycheck failure is treated as a separate offense, with administrative fines of up to $100 per violation. 

Late paycheck penalties in South Dakota

South Dakota allows employees to file a claim for unpaid wages with the DoL. While the law does not specify statutory waiting-time multipliers or daily penalties, you may risk administrative penalties, attorney’s fees, and civil liability for back wages.

In addition, repeated or severe offenses may trigger investigations and potentially even criminal charges.

Late paycheck penalties in Tennessee

If you fail to pay wages on time, you may incur civil penalties ranging from $500 to $1,000 per violation, plus potential Class B misdemeanor charges with fines between $100 and $500 (for repeated or deliberate violations). Note that each late paycheck may constitute a separate offense. 

Late paycheck penalties in Texas

Texas law does not provide multipliers for late pay, but if the state determines bad faith non-payment, it may impose an administrative penalty of up to $1,000 per violation.

You are also liable for unpaid wages, accrued interest, and in some cases, liquidated damages in private lawsuits (depending on bad faith or repeated violations). In extreme cases, failure to pay after demand may result in a third-degree felony offense. 

Late paycheck penalties in Utah

Employers who willfully withhold wages may face a class B misdemeanor, and are liable for a 5% per day penalty on the unpaid amount (up to a statutory maximum payment period, usually around 20 days).

Your employees can also recover unpaid wages with interest, and may seek civil enforcement through the state’s labor commission. 

Late paycheck penalties in Vermont

Vermont authorizes employees to recover late and unpaid wages plus liquidated damages equal to twice the amount owed. In addition, you may also face civil fines of up to $5,000 per violation, as well as interest, attorney’s fees, and administrative enforcement.

Note that persistent or intentional delays could trigger broader legal consequences. 

Late paycheck penalties in Virginia

Under state law, employees may recover the full amount of unpaid wages, liquidated damages equal to those wages, and 8% annual interest from the due date. If the withholding was knowing, courts may even award treble damages.

In addition, the authorities can impose civil penalties of at least $1,000 per offense. 

Late paycheck penalties in Wisconsin

If you fail to pay an employee’s wages as required, the courts may award increased wages of up to 100% of unpaid wages at their discretion, in addition to attorney's fees and court costs. You may also face criminal penalties for certain wage violations.

Late paycheck penalties in West Virginia

If you fail to pay late wages by the next regular payday, you are liable for liquidated damages equal to double the unpaid wages or fringe benefits.

Late paycheck penalties in Wyoming

If you fail to pay owed wages, you may be subject to a $200-per-day fine for each unpaid day.

Claims are handled through civil suit or administrative complaint, where courts may also order unpaid wages, interest, and attorney’s fees. If you are found to be violating wage payment provisions repeatedly, you may face ongoing scrutiny and additional legal consequences.

Want to learn more about hiring in different US states?
Get a full breakdown of everything you need to know with our free US State Explorer tool.

Why do paychecks get delayed — and how can you avoid it?

Understanding the root causes of late payments can help you put preventive measures in place. For instance, common reasons for late paychecks include:

• Bank holidays or payroll processing delays
• Cash flow or funding issues
• Errors in timesheet submission or approval
• Technical issues with payroll software or banking systems
• Unclear or inconsistent payroll policies
• Manual payroll calculations leading to mistakes

Regardless of the reason, employees have a legal right to their earnings, and states rarely accept these explanations as valid reasons for missing a payday.

Therefore, to reduce the risk, you should aim to:

• Use automated payroll software that reduces errors and ensures timely processing.
• Set clear internal deadlines for timesheet submissions and approvals.
• Establish a payroll backup plan that can process emergency payments if your regular system fails.
• Stay compliant across jurisdictions if you employ people in multiple states.

See also: How long does payroll processing take?

What should you do if you miss a payday?

If the worst happens and your company has to delay a paycheck, it's important to act quickly and transparently. Ensure you:

1. Correct the delay immediately. Pay all affected employees as soon as possible via direct deposit, check, or another verifiable method.
2. Communicate clearly. Notify your employees of the issue, explain what happened, and provide a concrete timeline for resolution.
3. Document the incident. Record the cause of the delay, the date of payment, and the steps taken to prevent recurrence.
4. Check state laws. Some states impose additional obligations, such as interest payments or penalties, even for unintentional delays.
5. Consult your legal counsel. If the delay was significant or systemic, seek specialist legal advice to assess your risk exposure.
   
   

How can Remote help?

Timely payment of wages is more than a legal requirement; it’s a critical part of fostering employee trust and operational integrity. Whether you employ five people or five hundred, understanding your obligations can help you avoid penalties, prevent disputes, and maintain a positive workplace culture.

Key to this is working with a modern, reliable payroll partner, like Remote. We help you stay compliant with:

• Pre-funding and early payment collection to ensure funds are ready before payroll runs
• Automated payments to employees and tax authorities, reducing errors and delays
• Clear, predictable schedules with early processing windows for easy approvals
• An on-time pay guarantee, so your team gets paid even if your payment to Remote is delayed

As a result, Remote removes the friction, reduces the risk, and gives you full peace of mind that your team is being paid accurately and on time, every time.

To learn more, speak with one of our friendly payroll experts today.