Final Paycheck Laws: When Your Employer Must Pay You

After losing your job—whether through layoff, termination, or resignation—you're entitled to your final paycheck. But when you must receive it varies significantly by state and how your employment ended. This guide explains your rights and what to do if your employer doesn't pay on time.

Federal Law vs. State Law

Federal Requirements

The Fair Labor Standards Act (FLSA) doesn't require immediate payment of final wages. However, it does require:

• Payment of all wages owed
• Payment for all hours worked
• Payment at regular pay rate (or overtime rate where applicable)

State Laws Matter More

Most states have stricter requirements than federal law, including:

• Specific deadlines for final pay
• Different rules for termination vs. resignation
• Penalties for late payment
• Requirements about unused PTO

State-by-State Final Paycheck Rules

Same Day / Immediately

California:

• Fired/laid off: Immediately
• Quit with 72+ hours notice: Last day
• Quit without notice: Within 72 hours
• Penalties: Up to 30 days' wages for willful violation

Colorado:

• Fired/laid off: Immediately
• Quit: Next regular payday

Montana:

• Fired/laid off: Immediately (or within 4 hours if requested)
• Quit: Next regular payday

Within 24-72 Hours

Arizona:

• Fired/laid off: Within 7 days or next payday (whichever sooner)
• Quit: Next regular payday

Massachusetts:

• Fired/laid off: Day of termination
• Quit: Next regular payday

Michigan:

• All separations: Next regular payday

Nevada:

• Fired/laid off: Immediately
• Quit: Next payday or within 7 days (whichever earlier)

Next Regular Payday

Florida:

• No specific final pay law
• Generally next regular payday

Georgia:

• No specific final pay law
• Generally next regular payday

Illinois:

• All separations: Next regular payday

New York:

• All separations: Next regular payday

Ohio:

• All separations: Next regular payday or 15 days (whichever first)

Pennsylvania:

• All separations: Next regular payday

Texas:

• Fired/laid off: Within 6 days
• Quit: Next regular payday

Washington:

• All separations: Next regular payday

Other Variations

Connecticut:

• Fired/laid off: Next business day
• Quit: Next regular payday

North Carolina:

• All separations: Next regular payday
• Commissions may be delayed

Virginia:

• All separations: Next regular payday

What Must Be Included

Regular Wages

Your final check must include:

• All hours worked through your last day
• Overtime earned and not yet paid
• Any unpaid wages from prior periods
• Shift differentials or premiums

Commissions and Bonuses

Commissions:

• Must be paid per your commission agreement
• May be paid on different schedule than regular wages
• "When earned" rules vary by state and contract

Bonuses:

• Depends on bonus structure
• Discretionary bonuses may not be owed
• Earned bonuses must be paid
• Check your bonus agreement

Vacation and PTO

State laws vary significantly:

Must pay out accrued PTO:

• California
• Colorado
• Illinois
• Louisiana
• Massachusetts
• Nebraska
• Montana

Must pay if company policy promises it:

• Most other states
• Check employee handbook

No requirement to pay:

• Some states allow "use it or lose it"
• Even then, company policy may require payout

Expense Reimbursements

Unpaid business expenses must generally be reimbursed:

• Travel expenses
• Equipment purchases
• Work-related costs

Check state law and company policy.

If Your Employer Doesn't Pay

Step 1: Request Payment in Writing

Send a written demand:

• Email or certified letter
• State what you're owed
• Cite the deadline under state law
• Set a deadline for response

Sample letter: "I separated from employment on [date]. Under [state] law, my final paycheck was due [date]. As of today, I have not received payment for [amount] in owed wages. Please provide payment immediately to avoid further action."

Step 2: Contact HR or Payroll

Sometimes it's an administrative error:

• Follow up with HR
• Document all communications
• Get commitment to payment date

Step 3: File a Wage Claim

If employer doesn't respond:

• File with your state labor department
• Many states have online filing
• Process is usually free
• Agency investigates and may order payment

Step 4: Consider Legal Action

For significant amounts:

• Small claims court (for smaller amounts)
• Employment attorney consultation
• May be entitled to penalties and attorney fees

Penalties for Late Payment

Many states penalize employers for late final pay:

California: Up to 30 days of wages as waiting time penalty

Colorado: Penalties plus 125% of wages owed

Illinois: 2% of unpaid wages per month

Massachusetts: Triple damages possible

New York: Up to 100% of unpaid wages as liquidated damages

Check your state for specific penalty provisions.

Common Employer Violations

Withholding for Returned Equipment

Generally illegal to:

• Withhold entire paycheck for unreturned equipment
• Deduct equipment cost without written authorization

Legal alternatives for employers:

• Seek reimbursement separately
• Take to small claims if needed
• Not withhold wages

Making You Sign Something First

Employers cannot:

• Refuse to pay until you sign a release
• Condition final pay on any release
• Require you to pick up check in person (usually)

Final pay and severance are different:

• You can be required to sign for severance
• You cannot be required to sign for earned wages

Deducting From Final Check

Generally illegal without consent:

• Deductions for shortages
• Deductions for damages
• Most deductions require written authorization

Legal deductions:

• Taxes (required)
• Benefits you authorized
• Court-ordered garnishments

Special Situations

Laid Off in Mass Layoff

If WARN Act applies (100+ employees):

• 60 days' notice required
• If not given, you're owed 60 days' pay
• Plus benefits continuation
• This is in addition to final wages

WARN Act guide →

Final Paycheck and Severance

These are separate:

• Final paycheck: Wages you earned (mandatory)
• Severance: Additional payment (usually discretionary)

Employer cannot:

• Combine them and require release for both
• Withhold earned wages pending severance agreement

Death of Employee

If employee dies:

• Wages owed to estate or designated beneficiary
• State laws govern process
• May require probate depending on amount

Bankruptcy

If employer files bankruptcy:

• Wages are priority claim
• You may receive partial payment
• File claim with bankruptcy court

How to Calculate What You're Owed

Regular Hours

Hours worked × hourly rate = regular pay due

Overtime

Hours over 40 (weekly) × 1.5 × hourly rate = overtime due

PTO Payout

Unused hours × hourly rate = PTO payout (if required)

Commission

Check your commission agreement for calculation method

Expense Reimbursement

Total unreimbursed business expenses

Documenting Your Claim

Keep records of:

• Last day worked
• Hours worked in final pay period
• Pay stubs showing rate and accrued PTO
• Commission statements
• Expense reports submitted
• Communications with employer
• Any deductions you didn't authorize

Resources for Filing Claims

State Labor Departments

California: DIR Labor Commissioner Colorado: CDLE Labor Standards Florida: (No state agency—federal DOL or private action) Illinois: IDOL Wage Claim New York: DOL Labor Standards Texas: TWC Wage Claim

Search "[your state] wage claim" for your state's process.

Federal Options

Department of Labor:

• For FLSA violations
• When state law doesn't apply
• Wage.WHD@dol.gov

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Key Takeaways

1. State law controls — Requirements vary significantly by state
2. Termination vs. quitting matters — Different deadlines may apply
3. All wages must be paid — Including overtime, commissions, sometimes PTO
4. Can't condition on signing releases — For earned wages (severance is different)
5. Penalties exist — Late payment can cost employers significantly
6. File a wage claim — It's free and effective
7. Document everything — Keep pay stubs and records

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Related Resources:

• First 24 Hours After Layoff →
• Severance Negotiation →
• WARN Act Guide →
• Quitting vs Fired vs Laid Off →
• Unemployment Guide →