Payment upon termination
Understand state-specific laws regarding timely final paychecks upon employee termination.
Overview
There is no federal law that requires employers to pay, in a timely fashion, employees who quit, are laid off or fired. But some states have their own wage payment and collections acts and require the employer to provide a terminated employee’s final paycheck immediately or within a certain time frame, such as the following payday. And in some states, the final paycheck laws depend on whether the employee was fired or quit.
Even if an employee is fired, employers cannot withhold unpaid wages due, nor can they make a final paycheck conditional. Failure to follow the state’s final paycheck laws can lead to penalties and fines if the employee takes legal action.
Employers must follow the different state’s final paycheck laws. Beyond when the last paycheck is due, certain state might set further regulations on things like:
- paying out unused vacation pay
- paying out commission
- payments to temporarily laid-off, suspended or striking employees
- payments to specific industry or groups of employee requirements
- which employer types are excluded from the state’s law
Payment upon termination laws by state
The chart below lists basic termination laws by state for both employees who quit and employees who are involuntarily terminated.
Last updated on March 31, 2023