Final Paycheck Laws by State: 2025 Guide for U.S. Employers

Final paycheck laws by state determine when and how you must pay employees after they leave your company. Miss those final pay deadlines, and you risk waiting-time penalties, wage claims, or lawsuits.

This guide breaks down final paycheck laws by state in a practical way so you can see who needs to be paid, by when, and what should be included in that last check.

What Are Final Paycheck Laws?

Final paycheck laws are state-level rules that define when, how, and what you must pay an employee when their employment ends — whether they resign or are terminated.

Because there is no single federal standard, every employer has to navigate a patchwork of final paycheck laws by state.

In practice, these laws usually answer four core questions:

• Deadline: How quickly must the final paycheck be issued (same day, within a set number of days, next regular payday, etc.)?
• Payment method: Whether the payment can be made by check, direct deposit, cash, or another agreed method.
• What must be included: Base pay, overtime, earned commissions, bonuses, and sometimes accrued but unused vacation or PTO.
• Different rules for “fired vs. quit”: Many states require faster payment when the employer initiates the termination compared with when the employee resigns.

That’s why HR and small business owners cannot rely on a single rule of thumb. If you employ people across multiple states or have remote workers, final paycheck laws by state become a critical compliance checkpoint.

Final Paycheck Laws By State

States Without Specific Final Paycheck Laws

Some states do not set a specific statutory deadline for the payment of final wages. These currently include Alabama, Florida, Georgia, and Mississippi, while Missouri sets a timing rule only when an employee is terminated, not when they resign.

In these jurisdictions, employers usually issue the final paycheck on the next regular payday, whether the employee quit or was fired.

However, they still must follow federal FLSA rules and general wage payment laws, so delaying pay for an unreasonable period can still create compliance risk.

Can An Employer Withhold A Final Paycheck?

In most states, employers cannot withhold a final paycheck or condition it on the return of uniforms, laptops, or other company property.

A narrow exception exists in a few jurisdictions (for example, South Dakota) where final wages can be delayed until specific property is returned, but even then, employers must follow state law exactly.

Violating final paycheck laws by state can trigger wage claims, penalties, and fines if an employee takes legal action.

How Long Does An Employer Have To Send A Final Check?

Final paycheck laws by state set different deadlines for issuing a last paycheck. In most states, employers must pay either on the next regular payday or within a set number of days after the employee’s last day, with shorter timelines when the employee is fired or laid off.

A few states do not specify an exact deadline, but employers are still expected to pay all earned wages promptly, usually by the next scheduled payday.

What Needs To Be Included In A Final Paycheck?

Under final paycheck laws by state, the last check must include all regular wages earned through the employee’s final workday, plus any additional amounts required by law or company policy.

That can include accrued but unused vacation or PTO, earned commissions, vested bonuses, and approved expense reimbursements. Some states, such as California, specifically require payout of unused vacation at termination.

What Happens If An Employer Fails To Comply With Final Paycheck Laws?

When employers ignore final paycheck laws by the state, they risk wage claims, lawsuits, and financial penalties. Employees can recover unpaid wages plus interest, and some states add extra compensation.

For example, in Arkansas, if a terminated worker is not paid within 7 days of the next regular payday, the employer can owe up to double the wages due.

Beyond the financial costs, repeated violations can trigger investigations by labor agencies and damage the company’s reputation with current and future employees.

How Final Paycheck Laws Connect To Your Overall HR Compliance

Final paycheck rules do not exist in isolation. They connect to your timekeeping processes, PTO and vacation policies, commission plans, and offboarding routines.

If timekeeping is incomplete or delayed, it’s hard to calculate an accurate final paycheck on time. That is why supervisors must approve and submit hours quickly when someone leaves. If your PTO policy is ambiguous, you may accidentally create an obligation to pay out time you did not plan for.

Remote work has also made state compliance more complex. When you hire in new states, you are subject to new final paycheck rules, wage payment laws, and enforcement agencies. HR and payroll teams should work together to review local requirements before hiring in a new location.

By treating final pay as a core compliance process rather than a last-minute administrative step, you reduce risk and give employees a cleaner, more respectful exit experience.

Final Paycheck Laws: Key Takeaways For Small Employers

Final paycheck laws by state determine when and how you pay employees their last wages after they leave. Federal law requires payment for all hours worked, but it does not set a national deadline, so you must follow the state where the employee works.

The deadlines often change depending on whether the employee quits or is fired, whether they gave advance notice, and whether your state has additional penalties for late payment. You may also have to include vacation payout, commissions, bonuses, and reimbursable expenses.

When in doubt, paying sooner rather than later and confirming with trusted legal or government sources is always the safer option.