When letting go of an employee (or when they leave voluntarily), employers must ensure they are aware of when to:
- Legally compensate departing employees:
- Most states require that employers give departing employees their dismissal (or final) paychecks within a set period of time, or even on the employee’s last day of work. In some states, the time period varies depending on whether the employee quit or was fired/laid off.
- . Additionally, if necessary, employers should also remunerate departing employees for any unused vacation hours.
State laws usually require employers to give final paychecks within a specific timeframe, which can differ depending on whether the employee resigned or was terminated.
Employers commonly think they should provide the termination paycheck on the upcoming scheduled payroll. However, it's common for the payroll to fall after the relevant payment deadline, potentially causing inadvertent legal violations.
Paying a departing employee late can result in substantial consequences, including state-imposed penalties, additional compensation to the employee, and, in certain states, potential criminal ramifications.
State-wise dismissal requirements
| State | If the Employee Quits | If You dismissed the Employee |
| Alabama | No law | No law |
| Alaska | Next scheduled payday that’s at least 3 days after the employee gives notice | Within 3 working days of termination |
| Arizona | Next scheduled payday | Whichever is first: within 7 working days or next payday |
| Arkansas | Next scheduled payday | Next scheduled payday, or within 7 working days if the employee demands it. (employer will owe 2X the wages if not paid within 7 days) |
| California | Within 72 hours or immediately if the employee gave at least 72 hours’ notice | Immediately (employees can recover penalties for everyday wages are withheld) |
| Colorado | Next scheduled payday | Immediately |
| Connecticut | Next scheduled payday | Next business day |
| Delaware | Next scheduled payday | Next scheduled payday |
| District of Columbia | Whichever is first: within 7 days or next payday | Next business day |
| Florida | No law | No law |
| Georgia | No law | No law |
| Hawaii | Immediately if employee gives one pay period notice, or scheduled payday | Immediately or next business day |
| Idaho | Whichever is first: within 10 days or next payday. If employee provides a written request for earlier payment, within 48 hours of receiving the request. | Whichever is first: within 10 days or next payday. If employee provides a written request for earlier payment, within 48 hours of receiving the request. |
| Illinois | Immediately if possible but no later than next scheduled payday | Immediately if possible but no later than next scheduled payday |
| Indiana | Next scheduled payday | Next scheduled payday |
| Iowa | Next scheduled payday | Next scheduled payday |
| Kansas | Next scheduled payday | Next scheduled payday |
| Kentucky | Whichever is later: within 14 days or next scheduled payday | Whichever is later: within 14 days or next scheduled payday |
| Louisiana | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days |
| Maine | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand | Whichever is first: next scheduled payday or within 2 weeks of employee’s demand |
| Maryland | Next scheduled payday | Next scheduled payday |
| Massachusetts | Next scheduled payday | Immediately |
| Michigan | All wages earned are due as soon as the amount can be determined | All wages earned are due as soon as the amount can be determined |
| Minnesota | Next payday that’s at least 5 days after an employee’s last day but no more than 20 days after the last day worked. | Within 24 hours of demand |
| Mississippi | No law | No law |
| Missouri | No law | Immediately |
| Montana | Whichever is first: next scheduled payday or within 15 days | Immediately (within 4 hours or the end of the same business day) |
| Nebraska | Whichever is first: next scheduled payday or within two weeks | Whichever is first: next scheduled payday or within two weeks |
| Nevada | Whichever is first: within 7 days or next payday | Within 3 days |
| New Hampshire | Next scheduled payday, or within 72 hours if the employee gives one period pay notice | Within 72 hours |
| New Jersey | Next scheduled payday | Next scheduled payday |
| New Mexico | Next scheduled payday | Next scheduled payday (task, piece and commission wages due within 10 days). If wages are a fixed amount, then they are due within 5 days of termination. |
| New York | Next scheduled payday | Next scheduled payday |
| North Carolina | Next scheduled payday, or before. Either by regular way wages are paid, or by mail. Employee’s decision. | Next scheduled payday, or before. Either by regular way wages are paid, or by mail. Employee’s decision. |
| North Dakota | Next scheduled payday | Next scheduled payday |
| Ohio | Whichever is first: next scheduled payday or within 15 days | Whichever is first: next scheduled payday or within 15 days |
| Oklahoma | Next scheduled payday, or within 14 days, whichever is later | Next scheduled payday, or within 14 days, whichever is later |
| Oregon | Immediately if the employee gave 48 hours’ notice, otherwise within 5 days, or the next payday – whichever comes first | By the end of the next business day |
| Pennsylvania | Next scheduled payday (If the employee requests the final check to be mailed, then the company is required to do so). | Next scheduled payday (If the employee requests the final check to be mailed, then the company is required to do so). |
| Rhode Island | Next scheduled payday | Next scheduled payday |
| South Carolina | Within 48 hours or next scheduled payday not to exceed 30 days | Within 48 hours or next scheduled payday not to exceed 30 days |
| South Dakota | Next scheduled payday, or the employer can hold the final pay until company property is returned. | Next scheduled payday, or the employer can hold the final pay until company property is returned. |
| Tennessee | Within 21 days or the next regular payday whichever occurs later | Within 21 days or the next regular payday whichever occurs later |
| Texas | Next scheduled payday | Within 6 calendar days |
| Utah | Next scheduled payday | Within 24 hours |
| Vermont | Whichever is first: next scheduled payday or if there is no regular payday, then the next Friday. | Within 72 hours from the time of discharge |
| Virginia | Next scheduled payday | Next scheduled payday |
| Washington | Next scheduled payday | Next scheduled payday |
| West Virginia | Next scheduled payday | Next scheduled payday |
| Wisconsin | Next scheduled payday | Next scheduled payday |
| Wyoming | Next scheduled payday | Next scheduled payday |