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Final Paychecks for Departing Employees

You have to be ready with that final paycheck soon after your employees quit or are fired.

Most states require employers to give departing employees their final paychecks in fairly short order -- sometimes on their last day of work. In some states, these time limits vary depending on whether the employee quit or was fired. Also, some states require you to pay out accrued, unused vacation days at the same time.

Many employers break these laws out of ignorance. They assume that paying the employee on the usual payroll schedule is sufficient. But violating these laws -- even unwittingly -- can be costly. In some states, if you fail to pay a departing employee within the legal time limits, you may have to pay additional penalties, interest and the attorney fees and legal costs the employee had to spend forcing you to comply.

Here is a rundown of state laws regarding final paychecks:

Alabama No statute
Alaska Within three days. (Alaska Stat. §23.05.140)
Arizona If employee is fired: within three days or next scheduled payday, whichever is sooner. If employee quits: next scheduled payday. (Ariz. Rev. Stat. Ann. §23-353)
Arkansas Railroad employees only: If employee is fired: immediately. All other employees: if employee is fired: within seven days after demand; if employee quits: no applicable law. (Arkansas Code §11-4-405; Howard v. Glenn Bros. Trucking, 609 S.W.2d 897 (Ark. 1980))
California If employee is fired: immediately. If employee quits and does not have a contract for a definite period of employment: within 72 hours, or immediately if the employee has given 72 hours of notice. If seasonal agricultural industry employee is fired: within 72 hours. If motion picture industry employee is laid off: next pay day; if fired, within 24 hours. If oil drilling industry employee is laid off: within 24 hours.
Accrued vacation benefits must be paid as wages with final paycheck. (Cal. Lab. Code §§201, 202 and 227.3)
Colorado If employee is fired: immediately. If employee quits: next scheduled payday. (Colo. Rev. Stat. Ann. §8-4-104)
Connecticut If employee is fired: next business day. If employee quits: next scheduled payday. (Conn. Gen. Stat. Ann. §31-71c)
Delaware Next scheduled payday. (Del. Code Ann. tit. 19, §1103)
Accrued vacation pay need not be part of final paycheck.
District of Columbia If employee is fired: next business day. If employee quits: next scheduled payday or seven days, whichever is sooner. (D.C. Code §36-103)
Florida No statute
Georgia No statute
Hawaii If employee is fired: immediately. If employee quits: next scheduled payday. (Haw. Rev. Stat. §388-3)
Idaho Next scheduled payday or within 10 business days, whichever is sooner. If written request made for earlier payment, within 48 hours. (Idaho Code §45-606)
Illinois Next scheduled payday. (820 Ill. Comp. Stat. 115/5)
Accrued vacation benefits must be paid as wages with final paycheck.
Indiana Next scheduled payday except for railroad employees, who are covered under federal law. If an employee leaves voluntarily and his or her whereabouts are unknown, the employer need not issue the final paycheck at the next regularly scheduled payday and may wait until 10 days have passed since an employee has furnished an address. (Ind. Code §§22-2-9-2 and 22-2-5-1)
Iowa Next scheduled payday. (Iowa Code Ann. §91A.4)
Accrued vacation benefits must be paid as wages with final paycheck.
Kansas If employee leaves or is discharged, next scheduled payday. (Kan. Stat. Ann. §44-315)
Kentucky If employee is fired: next scheduled payday or within 14 days, whichever is later. (Ky. Rev. Stat. Ann. §337.055)
Accrued vacation pay need not be part of final paycheck.
Louisiana If employee is fired: within three days. If employee resigns: on or before the next regular payday or within 15 days following the resignation, whichever comes first. La. Rev. Stat. Ann. §23:631
Accrued vacation benefits must be paid as wages with final paycheck.
Maine Next scheduled payday or within two weeks after demand, whichever is earlier. (Me. Rev. Stat. Ann. tit. 26, § 626)
Accrued vacation benefits must be paid as wages with final paycheck.
Maryland Next scheduled payday. (Md. Lab. & Emp. Code Ann. §3-505)
Massachusetts If employee is fired: immediately. If employee quits: next scheduled payday. (Mass. Ann. Laws ch. 149 §148)
Accrued vacation benefits must be paid as wages with final paycheck.
Michigan As soon as amount can be determined with due diligence. (Mich. Comp. Laws §408.475)
Minnesota If employee is fired: within 24 hours. If employee quits: not later than the first regularly scheduled payday following the final day of work. If this is less than five days after the last day of work, then the paycheck may be delayed until the next regularly schedule payday, or within 20 days of the final day of work, whichever is sooner. (Minn. Stat. §§181.13 and 181.14)
Mississippi No statute
Missouri If employee is fired: immediately. The employee may request in writing that the pay be sent by mail, and if it does not arrive within seven days of the request, the employee is entitled to sue for them. If employee quits: no applicable law. (Mo. Ann. Stat. §290.110)
Montana If employee is fired for cause: immediately. If employee quits: next payday or 15 days, whichever comes first. (Mont. Code Ann. §39-3-205)
Nebraska If employee is fired: next scheduled payday or within two weeks, whichever is sooner. If employee quits: no applicable law. (Neb. Rev. Stat. §48-1230)
Nevada If employee is fired: immediately. If employee quits: next scheduled payday or within seven days, whichever is earlier. (Nev. Rev. Stat. §§608.020 to 608.050)
New Hampshire If employee is fired: within 72 hours. If employee quits: next scheduled payday; or if employee gives at least one pay period's notice, within 72 hours of the last day of work. (N.H. Rev. Stat. Ann. §275:44)
New Jersey Next scheduled payday. (N.J. Stat. Ann. §34:11-4.3)
New Mexico If employee is fired: due immediately and payable within 5 days. However, if the pay is not based on a set amount but is calculated according to commission, task or other method of computation, it is due and payable within 10 days. If employee quits and does not have a written employment contract for a definite period: next payday. (N.M. Stat. Ann. §§50-4-4 and 50-4-5)
New York Next scheduled payday. (N.Y. Labor Laws §191)
Accrued vacation pay need not be part of final paycheck.
North Carolina Next scheduled payday. However, wages based on commissions, bonuses or other methods of calculation are due on the next regularly scheduled payday following that calculation. (N.C. Gen. Stat. §95.25.7)
Accrued vacation benefits must be paid as wages with final paycheck.
North Dakota If employee is fired: immediately; must be paid by certified mail within 15 days or the next scheduled payday, whichever comes first. If employee resigns: next scheduled payday. (N.D. Cent. Code §34-14-03)
Ohio No statute
Oklahoma Next scheduled payday. (Okla. Stat. Ann. tit. 40, §165.3)
Oregon If employee is fired: immediately. If employee quits: immediately as long as he or she has given 48 hours notice. If less than 48 hours notice has been given, within five days or the next payday, whichever occurs first. For seasonal farmworkers who have given 48 hours notice of quitting: immediately; if less than 48 hours notice, 48 hours or next payday, whichever comes first. (Or. Rev. Stat. §652.140)
Accrued vacation benefits must be paid as wages with final paycheck.
Pennsylvania Next scheduled payday. (43 Pa. Cons. Stat. Ann. §260.5)
Rhode Island Next scheduled payday. (R.I. Gen. Laws §28-14-4)
Accrued vacation benefits must be paid as wages with final paycheck.
South Carolina Within 48 hours or next scheduled payday, which may not be more than 30 days. (S.C. Codified Laws §41-10-50)
South Dakota If employee is fired or quit: next scheduled payday. (S.D. Codified Laws §§60-11-10 and 60-11-11)
Tennessee Next scheduled payday or 21 days, whichever occurs later. (Tenn. Code. Ann. §50-2-103)
Accrued vacation benefits must be paid as wages with final paycheck.
Texas If employee is fired: within six days. If employee quits: next regularly scheduled payday. (Texas Code Ann., Labor §61.014)
Utah If employee is fired: within 24 hours. If employee quits and there was not an employment contract for a definite period: next regular payday. (Utah Code Ann. §34-28-5)
Vermont If employee is fired: within 72 hours. If employee quits: next scheduled payday or, if no scheduled payday exists, the next Friday. (Vt. Stat. Ann. tit. 21, §342)
Virginia Next scheduled payday. (Va. Code §40.1-29)
Washington Next scheduled payday. (Wash. Rev. Code §49.48.010)
West Virginia If employee is fired: within 72 hours. If employee quits: next regular payday; if employee has given one pay period of notice: immediately. (W. Va. Code §21-5-4)
Wisconsin Any employee, except a salesperson paid by commission, who does not have an employment contract and who quits or is fired: next regular payday but not more than a month later. (Wis. Stat. Ann. §109.03)
Wyoming Five business days. (Wyo. Stat. Ann. §27-4-105)


Article content © 2004 Nolo.com

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