Departing employees are likely owed a final paycheck, whether they decided to leave voluntarily or were terminated by the company. Each state has its own rules for issuing an employee’s final paycheck, depending on how an employee leaves the company.
The Fair Labor Standards Act (FLSA) protects employees against employers who fail to meet minimum wage or final pay laws. Here’s what employees should know about state laws and how Mosey can help you stay on track by state.
What Is a Final Paycheck?
A final paycheck refers to an employee’s last paycheck with a company. This could be the final paycheck for a terminated employee or the final paycheck for an employee who has voluntarily left a company.
Federal law doesn’t require that an employer provides an employee with their final paycheck immediately upon termination of employment, but states make their own laws regarding final pay. The only federal requirement is that employees are to be paid on time, even if they no longer work for a company.
What States Have No Final Paycheck Laws?
States with no final paycheck laws don’t mandate requirements for when and how an employer should provide an employee with their final paycheck. Employers are still required to provide employees with their final pay in a timely manner, but the state allows them to do so in a manner they prefer.
Employees are allowed to file a back pay claim with the Department of Labor if they don’t receive their final paycheck by the date that would have been their payday if they still worked with the company.
States without final paycheck rules generally abide by the claim guideline to avoid fees and compliance issues associated with withholding wages, as per the Department of Labor.
- Alabama
- Florida
- Georgia
- Mississippi
- Missouri*
Missouri has no laws regarding final paychecks if the employee voluntarily leaves the company. If an employee is terminated, Missouri employers are required to provide a final paycheck immediately.
The rationale is that an employer doesn’t have the ability to predict when an employee may quit, but termination is a decision made by an employer. Employers must be prepared to pay all wages owed at the time of termination.
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What States Observe the Next Regular Payday Rule?
Some states observe federal guidelines for final paycheck rules whether an employee quit or was fired. As long as states provide final paychecks to employees by their next regularly scheduled payday, employers won’t face fines or compliance issues from the Department of Labor.
These states use a simplified “next payday” approach for all employees who will no longer be working for a company:
- Colorado*
- Delaware
- Illinois*
- Indiana
- Iowa
- Kansas
- Maryland
- New Jersey
- New York
- North Carolina
- Pennsylvania*
- Rhode Island
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Employers in these states essentially operate under the assumption that payday will proceed as normal for everyone, including terminated employees and former employees who chose to pursue other opportunities. This simple approach allows payroll operations to proceed as normal and won’t create any additional work for employers.
Illinois and Pennsylvania are slightly different. Illinois employers are asked to provide former employees with their last paycheck immediately if possible but are allowed to wait until the next scheduled payday if it wouldn’t be feasible to provide immediate payment.
Pennsylvania employers generally abide by the “next scheduled payday” rule, but if an employee requests to receive their final paycheck sooner, the employer must honor that request.
Colorado uses a similar system. Employees who quit are entitled to their paycheck on their next scheduled payday, but employees who are terminated can obtain their paychecks as soon as possible.
What Are the “Whichever Is First” States?
Some states use a “whichever is first” model for issuing a final paycheck. These states use the next scheduled payday or a specific period of time and are required to issue a final paycheck as soon as possible.
In other words, if the time period ends before the next scheduled payday, employers must give employees a final paycheck within that time period.
- Idaho: Next scheduled payday or within 10 days. Employees can ask for their final check early with a formal written request. If they do, Idaho employers have 48 hours to issue a final paycheck from the time they receive that request.
- Louisiana: Next scheduled payday or within 15 days.
- Maine: Next scheduled payday or within two weeks of an employee’s formal request for their final paycheck.
- Nebraska: Next scheduled payday or within two weeks.
- Ohio: Next scheduled payday or within 15 days.
What States Require Prompt Payment?
A few states require prompt action on the part of the employer when an employee is fired or quits their position.
Hawaii: Hawaiian employers must provide an employee with their final paycheck immediately if the employee gives notice one period ahead. Employees who quit without notice must wait until the next scheduled payday. Terminated employees are entitled to their paycheck immediately or the next business day if immediate payment isn’t feasible.
Illinois: Illinois employers are required to provide an employee with their final paycheck no later than the next business day after an employee quits or is terminated from their position.
Oregon: If an employee gives at least 48 hours’ notice that they intend to quit, Oregon employers must provide a final paycheck immediately. If they did not give at least 48 hours’ notice, employers must issue a final paycheck within five days or by the next pay period, whichever comes first. Terminated employees must receive their final paycheck no later than the next business day.
Michigan: Whether an employee quits or is terminated, an employer is required to issue a final paycheck the moment that the full amount of owed wages can be determined. This is usually interpreted to mean that a paycheck is due nearly immediately or at least within one or two business days.
New Hampshire: New Hampshire requires final paychecks to be issued to an employee within 72 hours if they give one pay period notice prior to quitting. Without notice, employers have until the next scheduled payday to issue a final check. Terminated employees must be paid their final wages within 72 hours of termination.
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What States Have Specific or Unique Final Paycheck Laws?
Some states have final paycheck laws shaped by the experience of employers or employees in the state. These states use a tailored approach:
Alaska: Employees who quit can receive their last paycheck on the next scheduled payday that’s at least three days after they give notice. Terminated employees must receive their final check within three working days.
Arizona: Employees who leave the company will be paid by the next scheduled payday. Employees who have been fired must receive their final check by the next scheduled payday or within seven working days, whichever is first.
Arkansas: Employees who quit must receive their paycheck by the next scheduled payday. Arkansas has slightly more complex rules for employees who are terminated. By default, terminated employees will receive their check by the next scheduled payday. The situation changes if the employee demands their final wages sooner.
California: Employees who quit must be paid their final wages within 72 hours if they didn’t give notice. If they give at least 72 hours’ notice, employees must be paid immediately. Terminated employees must receive their final wages immediately and are entitled to collect penalty fees from their employer for every day their final check is late.
Massachusetts: Employees who quit may receive their unpaid wages on the next scheduled payday. Employers must pay employees immediately upon termination.
Minnesota: Employees who quit must be issued a final paycheck within 20 days of the last day they worked for the company or the next payday that’s within at least five days after their last day. Terminated employees must be issued their final paycheck within 24 hours of requesting their check.
Montana: Employees who quit must receive their final paycheck within 15 days of quitting or by the next scheduled pay period, whichever comes first. Terminated employees must be paid immediately, no later than four hours after their last day of work.
Nevada: If an employee quits, they must be paid within seven days or by the next scheduled payday. Terminated employees must be paid immediately.
New Mexico: Employees who quit their jobs in New Mexico must be paid by the next scheduled payday. Terminated employees must receive wages for piecework or commission work within 10 days of termination. Fixed-wage employees must be paid within five days of termination.
South Carolina: Whether an employee quits or is terminated in South Carolina, they must receive their final paycheck within 48 hours or by the next scheduled payday. This period may not exceed 30 days.
South Dakota: The employer has an advantage if an employee is terminated or decides to quit. In South Dakota, employees must receive their paycheck by the next scheduled pay period unless they still possess company property. Employers are entitled to withhold final earnings until company property is returned.
Tennessee: Terminated employees and employees who quit must receive their final paycheck by the next scheduled payday or within 21 days. The law favors whichever date is later, giving employers more time.
Texas: Employees who quit can receive their final paycheck on the next scheduled payday. In the event that an employee is terminated, employers must issue their final paychecks within six calendar days. Note that this time frame is not business days and does not exempt holidays.
Utah: Final paychecks should be issued by the next scheduled payday for employees who quit. Employees’ wages must be paid within 24 hours if they are terminated.
Vermont: Vermont employees who quit their jobs must be paid by the next scheduled payday. If there are no regularly scheduled paydays, employees must be paid by the next Friday following their departure. Terminated employees must receive their final checks within 72 hours of their official layoff.
Can an Employer Place Conditions on a Final Paycheck or Refuse To Remit It?
It’s illegal for an employer to refuse to send an employee their final paycheck within the timeframe allotted by the state’s final paycheck laws. If an employee is fired for causing damage to company property, an employer cannot withhold their final paycheck to cover damages. The only exception to this rule is South Dakota, where an employer can hold onto a final paycheck if an employee refuses to return company property.
Company policy can and should specify which final paycheck methods your company intends to use, but no written policy can contradict the law. If you intend to hold employees accountable for damages under certain situations, write your plan into your policy. You may still pursue them for damages through legal action, but you cannot withhold payment of wages.
How Mosey Can Help
Employers are responsible for maintaining payroll compliance with state and federal labor and wage laws. It can be difficult to keep track of every moving part, especially if you’re running a smaller business. Mosey is designed to help.
Our compliance management platform uses automations to help you keep track of state employment and labor laws, including final paycheck rules specific to your state. Schedule a demo with Mosey to learn how to take the guesswork (and the juggling act) out of compliance.
