All good things must come to an end, and sometimes, that old adage unfortunately applies to employment. When an employee separates from your company, the way you handle their final paycheck will vary based on the state they work in. We’re here to break it down for you, state by state.
In the absence of a state-specific regulation, you can default to the federal law. As outlined by the Department of Labor, you would issue the final paycheck on the next regularly scheduled pay day after the employee’s termination date. There is no federal mandate to pay for unused vacation or sick time.
Many state laws have different timelines and mandates, though. As a reminder, when federal and state laws differ, you must use the one that benefits the employee the most. Additionally, if your company’s handbook, policy, or common practice differs from state or federal law, you must abide by the one that benefits the employee the most. In fact, you’ll find that many states have no laws regarding unused vacation time and will instead default to the company’s policy or employment agreement.
Also note, rules may differ based on how the separation of employment occurs. The separation may be voluntary, such as when the employee resigns, quits, or retires. Their final paycheck procedures may be different from those for whom separation is involuntary, such as being fired, laid off, or otherwise terminated from employment
All data is current as of April 28, 2025. If state law and the info published here differ, state law will prevail. Compliance rules change often, so be sure to verify your state’s latest statutes.
Final Paycheck Laws by State
StateClick the state to link directly to the state’s law | Final Paycheck Timing | Paying out unused vacation or sick time off | Withholding Final Pay |
| Alabama | No state law on final paycheck timing/method.* | Not mandated; depends on employment agreement or company policy. | Commissions due within 30 days of termination; otherwise, employer may owe triple. |
| Alaska | Involuntary: final pay within 3 business days. Voluntary: next regular payday (at least 3 days after notice). | Not mandated; depends on employment agreement or company policy. | Final pay may be withheld for debts or disputes. |
| Arizona | Involuntary: final pay within 7 days or next payday (whichever is first). Voluntary: next regular payday. | Not mandated; depends on employment agreement or company policy. | Wages must be paid by immediately redeemable check, draft, money order, warrant, or bank deposit (no post-dating). |
| Arkansas | Final pay is due by the next regular pay date. | Not mandated; depends on employment agreement or company policy. | Final pay can be held for debts/disputes, but unpaid claims may double the amount owed. |
| California | Involuntary: immediate final pay. Voluntary (no notice): within 72 hours. Voluntary (72+ hours notice): immediate final pay. | Yes, employers must pay for unused vacation leave. | Terminate direct deposit upon separation unless employee authorizes. Pay time penalties for unpaid wages without good-faith dispute. |
| Colorado | Involuntary: pay immediately (if accounting available) or within 6 hours of accounting’s next workday. If accounting is off-site, deliver paychecks within 24 hours of the next workday to worksite, local office, or last known address. Voluntary: pay on the next regular payday. | Yes, pay out unused vacation time, commissions, and bonuses. | May hold final check up to 10 days for dispute/debt investigation. Pay penalty of 10 extra days’ wages or 125% if unpaid within 14 days (whichever is greater). |
| Connecticut | Involuntary: pay by next business day. Resignation/labor dispute separation: pay on next regular payday. Final commissions: due by the contract date or 30 days post-termination (whichever is later). Subsequent commissions are due per contract, but no later than 30 days after they are earned. | Not mandated; depends on employment agreement or company policy. | Generally, an employer cannot withhold a final paycheck. |
| D.C. | Involuntary: pay by the next business day. Voluntary or labor dispute: pay on the next regular payday or within 7 days, whichever is earlier. | Pay unused vacation if part of compensation and not prohibited by clear agreement. | Generally, cannot withhold final pay without a bona fide dispute and written notice. |
| Delaware | Pay final wages by the later of next payday or 3 days after separation; mail upon request. | Not mandated; depends on employment agreement or company policy. | May hold final pay for valid disputes; may owe 10% daily penalty on unpaid wages. |
| Florida | No state law on final paycheck timing/method.* | Not mandated; depends on employment agreement or company policy. | Generally, only withhold final pay with employee consent, debt owed, or legal requirement. |
| Georgia | No state law on final paycheck timing/method.* | Not mandated; depends on employment agreement or company policy. | Cannot indefinitely withhold final pay; may deduct debts or disputed amounts. |
| Hawaii | Involuntary: pay immediately or next business day if immediate payment impossible. Voluntary (no notice): pay on next scheduled payday. Voluntary (one pay period notice): pay immediately on last day. Provide final pay via requested method (mail or usual delivery). | Not mandated; depends on employment agreement or company policy/practice. | Hawaii generally prohibits withholding final pay, but disputed wages are allowed. |
| Idaho | Provide final pay by the earlier of the next regular payday or within 10 days. An employee’s written early payment request must be paid within 48 hours of receipt. | Not mandated; depends on employment agreement or company policy. | Generally no withholding without consent, legal authorization, or disputes for debts. Non-payment can incur up to $750 penalty. |
| Illinois | Provide final pay immediately if possible; no later than the next regular payday, via requested method (mail or usual delivery). Commissions due at termination must be paid within 13 days of termination. Commissions due after termination must be paid within 13 days of the date they become due. | Employees must be paid for earned, unused vacation and holiday pay, with exceptions for leave solely under Illinois’ Paid Leave for All Workers Act (unless combined with other leave types). Chicago requires payout of unused leave exceeding 40 hours used in the prior 12 months. See § 200.460 for details. | Generally, cannot withhold final pay. |
| Indiana | Provide final paycheck by the next regular payday. If ex-employee doesn’t provide address, pay within 10 days of employee request or address receipt. | Not mandated; depends on employment agreement or company policy. | Generally, cannot withhold final pay. |
| Iowa | Provide final paycheck by the next regular payday. Employers have 30 extra days to reconcile credited vs. earned commissions. | Not mandated; depends on employment agreement or company policy. | Generally, cannot withhold final pay. |
| Kansas | Provide final pay by the next regular payday. Commissions must be paid no later than 30 days. | Not mandated; depends on employment agreement or company policy. | Only withhold final pay for legal reasons (taxes, garnishments) or employee-authorized benefits. Failure to pay as required incurs a 1% daily penalty. |
| Kentucky | Pay final wages by the earlier of the next payday or 14 days. | Yes, employers must pay for unused “vested” vacation leave. | Generally, cannot withhold final pay. |
| Louisiana | Pay final wages by the earlier of the next payday or 15 days. Wages must include commissions, incentive pay, and bonuses unless prior written policy states otherwise. | Yes, employers must pay for unused leave for qualified employees. | Cannot completely withhold final pay; may deduct unpaid debts. |
| Maine | Issue final pay by the earlier of the next payday or two weeks after employee request. Mail final pay to arrive by next payday; employee can also pick it up. | Maine employers (11+ employees) must pay out unused vacation upon termination. Maine’s Earned Paid Leave (any reason) doesn’t require payout unless the employer’s policy states otherwise. Sales of business: earned vacation must be paid within two weeks, unless the buyer agrees to cover it. Vacation pay has the same status as earned wages. | Voluntary: with employee’s written authorization, allows 100% deduction for overpayment/loans (limited to 3 years of overpayment). Involuntary: limits overpayment recoupment to 5% without written consent. |
| Maryland | Provide final pay by the next regular payday. Pay sales reps commissions within 45 days of the original payment due date. | Depends on employment agreement or company policy. If there’s no policy, you must pay out unused vacation days. | Generally, cannot withhold final pay. |
| Massachusetts | Involuntary: pay on the same day. Voluntary: pay on the next regular payday. If there’s no regular payday, provide payment on the Saturday following resignation. Pay sales reps commission within 15 days of termination. | If terminated, pay accrued unused vacation/PTO. Sick days not required unless stated in policy/contract. Reasonable vacation accrual caps are allowed with adequate notice, specific deadlines, and reasonable opportunity for employees to use the time. | Cannot withhold final pay without legal authorization or written consent. |
| Michigan | Provide final pay by the next regular payday. | Depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Minnesota | Involuntary/layoff: pay immediately or within 24 hours of written request. Voluntary: pay by next payday (5-20 days after notice/separation). Extra 10 days allowed for audit if employee handled company property/money. Terminated/resigned “commission salespersons” with 5+ days’ notice get earned commissions within 3 working days. Less than 5 days’ notice means commissions are due on demand within 6 working days. | Yes, all accrued and unused vacation time must be paid upon separation unless the employer has a clear and unambiguous policy stating it won’t be paid out. | Generally, cannot withhold final pay. |
| Mississippi | Provide final pay by the next regular payday. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Missouri | Involuntary: pay immediately. If not possible, pay within 7 days of certified written request. Voluntary: pay by next regular payday. | Not mandated; depends on employment agreement or company policy. | Cannot completely withhold final pay; may deduct for legal reasons or with written consent (e.g., property damage, cash shortages), but not below minimum wage. |
| Montana | Involuntary: pay immediately (within four hours of the end of the business day) unless the employer has a written policy extending that time to the earlier of the next payday or within 15 days. Theft with criminal charges filed: can seek court order to temporarily withhold pay pending case outcome. Voluntary: pay by next payday or 15 days, whichever is first; out-of-state payroll adds 3 days. | Yes, employers must pay for unused vacation leave, but policies capping the accrual of vacation are lawful. | Generally, cannot withhold final pay. Note, because Montana is not an at-will employment state, termination without cause may be actionable. |
| Nebraska | Pay final wages by the earlier of the next payday or two weeks. Commissions are due on the next regular payday after the employer receives payment for the relevant goods/services (Neb. Rev. Stat. § 48-1230.1). | Yes, employers must pay for unused vacation leave. | Generally, cannot withhold final pay. |
| Nevada | Involuntary: pay immediately. Voluntary: pay within 7 days or next payday (whichever is first). | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| New Hampshire | Involuntary: If terminated, pay within 72 hours. If laid off, pay by next regular payday. Voluntary: pay by next regular payday. If the employee provides at least one pay period’s notice, pay within 72 hours. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| New Jersey | Provide final pay by the next regular payday. Sales commissions are due within 30 days of contract termination or when earned, whichever is later (N.J. Stat. Ann. § 2A:61A-2). | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| New Mexico | Involuntary: Pay fixed wages (hourly/salary) within five days of separation. Pay commissions within 10 days of separation. Voluntary: pay by next regularly scheduled payday. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| New York | Provide final pay by the next regular payday using the delivery method the employee prefers (direct deposit or mail. Sales commissions are due within 5 business days of contract termination or when earned (if after termination). | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| North Carolina | Pay final wages by the next regular payday. Pay calculable commissions/bonuses by the first regular payday after calculation. | Yes, employers must pay for unused vacation leave unless there’s a written forfeiture clause. | Cannot withhold final pay without legal authorization or written consent. |
| North Dakota | Provide final pay by the next regular payday. | Yes, generally pay earned vacation as wages in final check. Exceptions for resigning employees: prior written notice of limitation/forfeiture, less than one year employment, or less than five days notice. | Cannot withhold final pay without legal authorization or written consent. |
| Ohio | Issue final pay on the 1st (for wages earned in the first half of prior month) or the 15th (for wages earned in the second half of prior month). | Not mandated; depends on employment agreement or company policy. | Cannot completely withhold final pay. Permitted deductions (legal, uniforms, drug tests, tools) cannot reduce pay below minimum wage. |
| Oklahoma | Provide final pay by the next regular payday. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Oregon | Involuntary: Pay by the end of the next business day. Voluntary (under 48 hours notice): pay within 5 business days or next payday (whichever is first). Voluntary (48+ hours notice), firing, layoff, mutual agreement: pay by end of next business day. Commissions paid separately when amount is known. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Pennsylvania | Provide final pay by the next regular payday. | Not mandated; depends on employment agreement or company policy. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. |
| Rhode Island | Involuntary due to business liquidating, merging, disposing, or moving the business out of state: pay within 24 hours. All others: Provide final pay by the next regular payday. Pay final wages via usual method (direct deposit, check pickup). | All earned, unused leave must be paid to employees who have been at the company for at least one year. Otherwise, depends on employment agreement or company policy. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. |
| South Carolina | Pay all wages within 48 hours of separation or the next regular payday (not exceeding 30 days). | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| South Dakota | Generally pay final wages on the next regular payday after separation. May delay if employee still has company property. | Not mandated; depends on employment agreement or company policy. | Can withhold final pay until company property is returned. Other deductions require written employee consent (e.g., insurance), but pay cannot fall below minimum wage. |
| Tennessee | Provide final pay by the next regular payday or within 21 days. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Texas | Involuntary: pay within six days. Voluntary: pay on next regular payday. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Utah | Involuntary: pay within 24 hours. Voluntary: pay on next regular payday. | Not mandated; depends on employment agreement or company policy. | If withholding final pay, employee can file a wage claim with the Labor Commission. Employer must respond within 10 business days. |
| Vermont | Involuntary: pay within 72 hours. Voluntary: pay on next regular payday or the following Friday if no payday is scheduled. | Not mandated; depends on employment agreement or company policy. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. |
| Virginia | Provide final pay by the next regular payday in the manner the employee’s wages are usually paid. | Not mandated; depends on employment agreement or company policy. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. Unlawfully withholding wages could lead to misdemeanor or felony charges. |
| Washington | Provide final pay by the next regular payday. Commissions to sales reps due within 30 days of contract payment received by employer. | Depends on employment agreement or company policy. If there’s no policy, you must pay out unused paid leave. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. |
| West Virginia | Pay all wages by the next regular payday. Pay commissions when determined payable per employer terms. Follow regular pay practices unless employee requests mailing (postmark date is payment date). | Yes, employers must pay for unused vacation leave unless there’s a written forfeiture clause. | Cannot outright withhold final pay. Deductions (legal or with written agreement) cannot go below minimum wage. |
| Wisconsin | Involuntary due to business liquidating, merging, or disposal: pay within 24 hours. Commission-based employees: exempt if their final pay requires an audit or verification. All others: provide final pay by the earlier of the next regular payday or 31 days. | Not mandated; depends on employment agreement or company policy. | Cannot withhold final pay without legal authorization or written consent. |
| Wyoming | Provide final pay by the next regular payday. | Yes, employers must pay for unused vacation leave unless there’s a written, signed forfeiture clause. | Cannot outright withhold final pay. May deduct for cash shortages, unreturned leave advances, lost/damaged property, or with legal authorization/written consent. |
*Where no state law exists, default to the federal Department of Labor’s standard of providing the final paycheck by the next regularly scheduled pay date.
For case-by-case help, contact your Nextep HR Business Partner.
