Final paycheck laws

Final paycheck laws set the deadline for paying a departing employee everything they have earned — final wages and, in some states, accrued time off. There is no federal deadline beyond the next regular payday; the real rules are state law, and they vary more than almost any other wage rule.

How it works in the United States

• Termination vs resignation often differ: many states set a faster clock when the employer ends the relationship. California, for example, requires final wages immediately on termination, and within 72 hours when an employee quits without notice.
• Deadlines span the full range: same day, within a set number of days, or the next regular payday, depending on the state and who ended the employment.
• Accrued PTO may be wages: some states require unused vacation to be paid out as earned wages — see PTO — while others leave it to policy.
• Deductions are tightly limited: withholding a final check over an unreturned uniform or register shortage is unlawful in many states; permitted deductions are narrow and usually need written authorization.
• Penalties bite: several states impose "waiting time" penalties — continuing daily wages — for late final pay.

Because departures rarely happen on payday, the practical need is fast, accurate final-hours data: every shift, every break, every premium, ready the day someone leaves.

State wage payment statutes (e.g., California Labor Code §§ 201–203 with waiting-time penalties) — see your state labor department; FLSA sets no special final-pay deadline.

Related terms

• Severance pay
• PTO
• Pay stub
• At-will employment