Final Paycheck

The last paycheck an employer must issue after employment ends — timing requirements vary by state and whether you quit or were terminated.

A final paycheck is the last wage payment an employer must issue after an employment relationship ends — whether through voluntary resignation, termination, layoff, or retirement. It must include all earned wages through the last day of work, any accrued but unused vacation or PTO that the company or state law requires to be paid out, and any other earned but unpaid compensation such as commissions on closed deals. The timing of when you must receive that final paycheck is governed almost entirely by state law, and the rules vary dramatically.

States fall into two broad categories. Some states — including California, Colorado, Montana, and Nevada — require the final paycheck on the last day of employment if you're terminated involuntarily. Others allow the employer until the next regular payday. California is notably the strictest: involuntary terminations require immediate payment on the day of discharge; voluntary resignations require payment within 72 hours (or immediately if 72-hour advance notice was given). Violating these deadlines exposes employers to waiting-time penalties — in California, a full day's wages for each day of delay, up to 30 days.

Accrued vacation payout is the most common source of final paycheck disputes. Some states (California, Colorado, Nebraska, Illinois) treat accrued vacation as earned wages that must be paid out at termination. Others (Arizona, Georgia, Florida) have no such requirement, and companies can legally implement use-it-or-lose-it policies. Your employee handbook or offer letter governs what you're owed in states without mandatory payout laws — so knowing your company's policy before you leave is important.