Everything regarding payroll is guided by laws, including last paycheck procedures. In fact, nearly every state has their own set of laws that govern what must happen when an employee is leaving your company, and it sometimes varies based on if they leave on their own or are terminated.
It’s important that you understand the laws that apply to your state so that you’re not out of compliance.
Last paycheck laws by state
Alabama, Florida, Georgia, Mississippi, Ohio : These states currently have no laws in place regarding the timing of the last paycheck for people that are terminated or leave voluntarily. Best practices tends to lean towards issuing last paychecks according to your normal pay cycle when no other laws is in place.
The following states must provide the final paycheck on the next scheduled payday for those that are terminated and those that leave voluntarily.
Delaware | Next scheduled payday |
Indiana | Next scheduled payday |
Iowa | Next scheduled payday |
Kansas | Next scheduled payday |
Maryland | Next scheduled payday |
New Jersey | Next scheduled payday |
New York | Next scheduled payday |
North Carolina | Next scheduled payday |
North Dakota | Next scheduled payday |
Oklahoma | Next scheduled payday |
Pennsylvania | Next scheduled payday |
Rhode Island | Next scheduled payday |
Virginia | Next scheduled payday |
Washington | Next scheduled payday |
West Virginia | Next scheduled payday |
Wyoming | Next scheduled payday |
In the following states, you must provide the final paycheck immediately, within 24 hours or on the next business day if you’ve terminated them, but rules vary if the employee is leaving voluntarily.
Employee leaves voluntarily | If terminated | |
California | Within 72 hours or immediately if company is provided a minimum 72 hour notice | Immediately |
Colorado | Next scheduled payday | Immediately |
Connecticut | Next scheduled payday | Next business day |
District of Columbia | Within 7 days of quitting or next scheduled payday – whichever is first. | Next business day |
Hawaii | Immediately if company is provided a minimum one pay period notice or next scheduled payday | Immediately or next business day |
Massachusetts | Next scheduled payday | Immediately |
Minnesota | Next payday that’s at least 5 days after an employee’s last day but no more than 20 days after the last day worked | Within 24 hours |
Missouri | No state law | Immediately |
Nevada | Within 7 days of quitting or next scheduled payday – whichever is first | Immediately |
Oregon | Immediately if the employee gave 48 hours’ notice. Otherwise within 5 business days | Next business day |
Utah | Next regular payday | Within 24 hours |
The following states have a variety of final pay rules that range from two to seven days for terminated employees to the next scheduled payday on voluntary employment separation.
Employee leaves voluntarily | If terminated | |
Alaska | Next scheduled payday that’s at least 3 days after the employee gives notice. | Within 3 working days of termination. |
Arizona | Next scheduled payday | Whichever is first: within 7 working days or next payday. |
Arkansas | Next scheduled payday | Within 7 working days |
New Hampshire | Next scheduled payday or within 72 hours (if employee gave at least one pay period’s notice) | Within 72 hours |
South Carolina | Within 48 hours or next scheduled payday | Within 48 hours or next scheduled payday |
Texas | Next scheduled payday | Within 6 calendar days |
Vermont | Next scheduled payday | Within 72 hours |
In the following states, final paycheck rules vary widely.
Employee leaves voluntarily | If terminated | |
Idaho | Within 10 days or next payday, whichever is first. Employee can submit a written request for earlier payment, and if they do it must be made within 48 hours of the request. | Same as if they leave voluntarily |
Illinois | Immediately if possible, but not later than the next scheduled payday. | Same as if they leave voluntarily |
Kentucky | Within 14 days or on the next scheduled payday, whichever is later | Same as if they leave voluntarily |
Louisiana | Next scheduled payday or within 15 days, whichever is first | Same as if they leave voluntarily |
Maine Next scheduled payday.Same as if they leave voluntarilyMichigan Next scheduled payday. Same as if they leave voluntarilyMontana | On the next scheduled payday or within 15 days, whichever is first | Immediately, but employers can have a written policy that extends this to the next scheduled payday or within 15 days of termination |
Nebraska | On the next scheduled payday or within 2 weeks, whichever is first | Same as if they leave voluntarily |
New Mexico | Next scheduled payday. | Within 5 days for fixed pay amounts and within 10 days for variable pay amounts, like commission-based pay |
South Dakota | On the next scheduled payday | Same as if they leave voluntarily |
Tennessee | On the next scheduled payday or within 21 days, whichever occurs later | Same as if they leave voluntarily |
Wisconsin | Next scheduled payday or within one month, whichever is first | Next scheduled payday or within one month, whichever is first |
Final paycheck rules Federal final paycheck rules
The Fair Labor Standards Act (FLSA) guides many labor practices, but doesn’t spell out everything you may need to know, like what you can and cannot deduct from final paychecks, and how to handle PTO balances. Additionally, your state may have their own laws in place which you’ll need to defer to in these matters, so you don’t end up with a labor violation. This includes how to handle paying out unused PTO and sick hours, so it’s important to connect with your state’s department of labor for clarify.
You can find your state’s labor offices by following this link.
The material presented here is educational in nature and is not intended to be, nor should be relied upon, as legal or financial advice. Please consult with an attorney or financial professional for advice.