Final pay: same day in some states, next payday in others

Federal law under the FLSA requires payment for all time worked, but it does not mandate a deadline for the final paycheck. That is left to the states, and they differ substantially.

The deadlines

Same-day or near-immediate payment for terminated employees is required in states including California, Colorado, Massachusetts, Missouri, Montana and Utah.

Most other states allow until the next regular payday.

Four states — Alabama, Florida, Georgia and Mississippi — have no state-specific final paycheck law at all, so the federal default applies.

Quitting versus being fired

The separation type affects the deadline in most states. Terminated employees typically have shorter final pay windows than those who resign.

Missouri has a final paycheck law if you are fired, but not if you quit.

In California, an employee who quits without notice must be paid within 72 hours; one who gives at least 72 hours' notice must be paid at the time of quitting.

What must be included

All wages earned through your last day, prorated for the partial pay period. For hourly employees that means hours at the correct rate, including any overtime triggered in that partial period.

Earned commissions and bonuses generally must be included once the amount can be calculated.

Unused vacation: the big variable

This is where states diverge most:

• Always paid out: California, Colorado, Montana, Nebraska and North Dakota treat accrued vacation as earned wages, regardless of employer policy
• Paid if there is a written policy: states including Illinois, Maine, Massachusetts and Minnesota
• Employer's policy governs: most other states, provided the policy is clearly documented in writing

Accrued sick leave is generally not required to be paid out.

Deductions

In most states an employer cannot deduct for unreturned equipment, training costs or damages from a final paycheck without your prior written consent.

Severance is separate

Severance is an additional payment under an agreement. It is not required by federal or state law.

If your final pay is wrong or late

Employers who fail to comply face penalties, fines, interest on unpaid wages, wage claims and lawsuits. Your state labour department handles these claims.