Final Payment on Termination

Many states have laws that specify on the duration an employer has in terms of final pay to the terminated employee. Usually, final pay is due immediately or soon after the employment ends. In many states, final pay is due by the next regular-scheduled payday. In some states, final pay is due within a certain number of days. And few states make it mandatory for the company to pay the final pay immediately.

State rules regarding final pay

• ALASKA. All - within 3 working days.
• ARIZONA. Fired - earlier of next regular payday or three working days.
  Quit - next regular payday.
• ARKANSAS. Fired - within seven days after demand or request.
• CALIFORNIA. Fired - at once. Quit - 72 hours or at once if 72 hour notice is given. Strikers - next regular payday.
• COLORADO. Fired - at once. Quit/strike - next regular payday.
• CONNECTICUT. Fired - next business day. Quit/laid off - next regular payday.
• DELAWARE. All - next regular payday.
• DC. Fired - next business day. Quit - earlier of next regular payday or seven days.
• FLORIDA - no provision.
• GEORGIA - no provision.
• HAWAII. Fired - at once. Quit - next regular payday.
• IDAHO. All - earlier of next regular payday or 10 days or within 48 hours of receipt of written request from employee.
• ILLINOIS. All - at once, if possible, but no later than next regular payday.
• INDIANA. All - next regular payday.
• IOWA. Fired - next regular payday.
• KANSAS. Fired/quit - next regular payday.
• KENTUCKY. Fired/quit - later of next regular payday or 14 days.
• LOUISIANA. Fired/quit/laid off - by next regular payday or no later than 15 days after end of employment
• MAINE. All - earlier of next regular payday or 2 weeks after demand.
• MARYLAND. Fired/quit - next regular payday.
• MASSACHUSETTS. Fired - at once. Quit - next regular payday.
• MICHIGAN. Fired - 4 working days. Quit - next regular payday.
• MINNESOTA. Fired - on demand or within 24 hours. Voluntary-quit employees - next regularly scheduled payday, not to exceed 20 days from the last day worked.
• MISSISSIPPI - no provision.
• MISSOURI. Fired - at once or 7 days if payment by mail.
• MONTANA. Wages are not due until the next pay day for the period in which the employee was separated, or 15 days, whichever occurs first.
• NEBRASKA. All - earlier of next regular payday or 2 weeks.
• NEVADA. Fired - at once. Quit - earlier of next regular payday or 7 days.
• NEW HAMPSHIRE. Fired - 72 hours. Quit - next regular payday or 72 hours if one pay period's notice given.
• NEW JERSEY. Terminated/laid off - next regular payday.
• NEW MEXICO. Fired - 5 days. Quit - next regular payday.
• NEW YORK. All - next regular payday.
• NORTH CAROLINA. All - next regular payday.
• NORTH DAKOTA. Fired - within 15 days or next regular payday. Quit/strike - next regular payday. Railroad - immediate.
• OHIO. no provision.
• OKLAHOMA. All - next regular payday.
• OREGON. Fired - next business day. Quit - earlier of next regular payday or 5 days or at once if 48 hours' notice given.
• PENNSYLVANIA. All - next regular payday.
• PUERTO RICO. All - next regular payday.
• RHODE ISLAND. Fired/striking - next regular payday. Laid off - within 24 hours of discharge.
• SOUTH CAROLINA. All - within 48 hours of by next regular payday, no more than 30 days.
• SOUTH DAKOTA. All - next regular payday.
• TENNESSEE. Must include vacation or other compensatory time.
• TEXAS. Fired - 6 days. Other - next regular payday.
• UTAH. Fired - 24 hours. Quit/Strike - next regular payday.
• VERMONT. Fired - 72 hours. Quit - next regular payday.
• VIRGINIA. All - next regular payday.
• WASHINGTON. Fired/quit - end of pay period.
• WEST VIRGINIA. Fired - 72 hours. Quit - next regular payday or at once if one pay period's notice given.
• WISCONSIN. Fired/quit - next regular payday.
• WYOMING. Fired/quit - 5 working days.

The outcome also depends upon the way the employment has ended, whether the person voluntarily resigned or was fired, laid off. The final pay is the working days wage (till the last day of work) of the employee owed by the employer. It may also include, overtime, bonuses, commissions, and expense reimbursements. However, bonuses and other perks depending upon the company’s policy.

Independent contractors, union workers and others are bonded by their contracts and are often excluded from the provisions of state final pay laws. Generally, the terms and conditions of their employment contract apply at the time of final pay.

When the employee's service is terminated, he/she may be entitled to certain separation packages. However, it depends on company's policy and agreement between the employer and the employee.

The employer may give a letter to the discharged employee stating about the benefits and pay checks they might receive once the job ends. Or, the employee needs to go through the company's policy and rules handbook to check out if there is any mention about severance pay or other separation packages.