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When Is an Employee’s Final Paycheck Due?

April 19, 2018 By Diana Cleveland - Leave a comment

When is the final paycheck due?Every employer knows that it’s critical to pay employees correctly, down to the penny—and that includes a departing employee’s final paycheck.    

It’s just good business sense to make employee departures as professional and amicable as possible, whatever the circumstances. For one thing, you don’t want disgruntled former employees spreading the word that you’re a bad employer—that can hurt your recruiting efforts as well as your brand.

For another, you want to minimize your risk of payroll-related lawsuits due to noncompliance. When that happens, employers may be required to not only compensate employees for back wages, but pay penalties, interest and the employee’s legal fees (as well as their own). 

It goes without saying, when it comes to employee compensation, it’s critical to know all applicable wage and hour laws—and to use HR and payroll software that facilitates proper payroll processing. If you operate in a high-turnover industry, you may be cutting final paychecks with great frequency.     

Unfortunately, when it comes to issuing final paychecks, the laws are not as simple as one might assume. Legislation varies greatly, depending on where the departing employee works and the reason for their departure—and even what’s included in that final paycheck.

With Final Paychecks, the States Make the Rules

Federal wage and hour law does not require that departing employees be paid their final paycheck on any specific schedule—although it encourages that they be paid no later than the regular payday of their last pay period.  

The states are a different story. All but four states have legislation in place that specifies when final paychecks must be presented to outgoing employees. In a number of states, the time limits vary, depending on whether an employee quits voluntarily or is terminated by the employer. And a handful of states also require that accrued PTO be included in the last paycheck.   

We reviewed several HR and employment law experts for their round-up of final paycheck deadlines—and summarized their findings below. As you know, employers should always refer directly with the labor departments of every state they operate in for complete, up-to-date information.

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Final Paycheck Laws, State-by-State

Alabama (AL)

No statute

Alaska (AK)

  • If employee quits: the next payday at least three days after employee gives notice.
  • If employee is terminated: within seven working days.

Arizona (AZ)

  • If employee quits: the next payday.
  • If employee is terminated: next payday or within seven working days, whichever is earlier

Arkansas (AR)

  • If employee quits: no statute.
  • If employee is terminated: within seven days.

California (CA)

  • If employee quits: within 72 hours, or immediately if the employee gave 72 hours of notice.
  • If employee is terminated: immediately.

Colorado (CO)

  • If employee quits: the next payday.
  • If employee is terminated: immediately (or within six hours of start of next workday, if payroll dept. is closed; 24 hours if dept. is offsite).

Connecticut (CT)

  • If employee quits: the next payday.
  • If employee is terminated: the next business day if fired; the next payday if laid off.

Delaware (DE)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

District of Columbia (DC)

  • If employee quits: the next payday or within seven days, whichever is earlier. Within 4 days if employee handles money.
  • If employee is terminated: the next business day.

Florida (FL)

No statute

Georgia (GA)

No statute

Hawaii (HI)

  • If employee quits: the next payday, or last day if employee gives pay period’s notice.
  • If employee is terminated: immediately, or the next business day if immediate payment isn’t possible.

Idaho (ID)

  • If employee quits: the earliest of the next payday or 10 days (or within 48 hours of employee’s written request)
  • If employee is terminated: the earliest of the next payday or 10 days (or within 48 hours of employee’s written request)

Illinois (IL)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Indiana (IN)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Iowa (IA)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Kansas (KS)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Kentucky (KY)

  • If employee quits: the next payday or within 14 days, whichever is later.
  • If employee is terminated: the next payday or within 14 days, whichever is later.

Louisiana (LA)

  • If employee quits: the next payday or within 15 days, whichever is earlier.
  • If employee is terminated: the next payday or within 15 days, whichever is earlier.

Maine (ME)

  • If employee quits: the next payday or within two weeks after demand, whichever is earlier.
  • If employee is terminated: the next payday or within two weeks after demand, whichever is earlier.

Maryland (MD)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Massachusetts (MA)

  • If employee quits: the next payday. If no scheduled payday, then the following Saturday.
  • If employee is terminated: immediately.

Michigan (MI)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Minnesota (MN)

  • If employee quits: the next payday or second payday if first payday is fewer than five days after last day (but within 20 days of last day of work).
  • If employee is terminated: immediately.

Mississippi (MS)

No statute

Missouri (MO)

  • If employee quits: no statute.
  • If employee is terminated: immediately.

Montana (MT)

  • If employee quits: the next payday or within 15 days, whichever is earlier.
  • If employee is terminated: immediately, unless employer has a written policy extending time of payment to the next payday or 15 days, whichever is earlier.

Nebraska (NE)

  • If employee quits: the next payday or within two weeks, whichever is earlier.
  • If employee is terminated: the next payday or within two weeks, whichever is earlier.

Nevada (NV)

  • If employee quits: the next payday or within seven days, whichever is earlier.
  • If employee is terminated: immediately.

New Hampshire (NH)

  • If employee quits: the next payday, or within 72 hours if employee gives one pay period’s notice.
  • If employee is terminated: within 72 hours if fired. Next payday if laid off.

New Jersey (NJ)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

New Mexico (NM)

  • If employee quits: the next payday.
  • If employee is terminated: within five days.

New York (NY)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

North Carolina (NC)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

North Dakota (ND)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday or within 15 days, whichever is earlier.

Ohio (OH)

  • If employee quits: first day of month for wages earned first half prior month; 15th day of the month for wages earned second half of prior month.
  • If employee is terminated: no statute.

Oklahoma (OK)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Oregon (OR)

  • If employee quits: immediately if employee has given 48 hours’ notice. Otherwise, within five days or the next payday, whichever is earlier.
  • If employee is terminated: end of the next business day.

Pennsylvania (PA)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Rhode Island (RI)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

South Carolina (SC)

  • If employee quits: no statute.
  • If employee is terminated: within 48 hours or next payday, not to exceed 30 days.

South Dakota (SD)

  • If employee quits: the next payday or when employee returns employer’s property.
  • If employee is terminated: the next payday or when employee returns employer’s property.

Tennessee (TN)

  • If employee quits: the next payday or within 21 days, whichever is later.
  • If employee is terminated: the next payday or within 21 days, whichever is later.

Texas (TX)

  • If employee quits: the next payday.
  • If employee is terminated: within six days.

Utah (UT)

  • If employee quits: the next payday.
  • If employee is terminated: within 24 hours.

Vermont (VT)

  • If employee quits: the next payday or the next Friday if no scheduled paydays.
  • If employee is terminated: within 72 hours.

Virginia (VA)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

Washington (WA)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday.

West Virginia (WV)

  • If employee quits: immediately if the employee has given one pay period’s notice. Without notice, on next payday.
  • If employee is terminated: within 72 hours.

Wisconsin (WI)

  • If employee quits: the next payday.
  • If employee is terminated: the next payday or within one month, whichever is earlier. If termination is due to merger, relocation, or liquidation, within 24 hours.

Wyoming (WY)

  • If employee quits: within 5 business days.
  • If employee is terminated: within 5 business days.

Is Your Payroll Software up to the Job?

Meeting final paycheck laws can be challenging, particularly for multi-state employers and those in high-turnover industries. You need HR and payroll software that can handle multiple pay rules and keep up with your fast-paced environment.

EPAY’s HCM platform was designed for employers like you. Our integrated payroll software is built to manage complex pay rules, improve accuracy and provide easy-to-access reports. We can ease the headache of final paychecks, while slashing your payroll team’s workload by 50%. Give us two minutes to show you what we can do!  

  

Filed Under: Employee Benefits, Compliance

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