The Final Paycheck of Employees: How Each State Handles Voluntary & Involuntary Termination Payment Procedures
As a follow up to the prior note on how Texas handles the final pay check of employees, with different rules depending upon whether the employee left the employment voluntarily or involuntarily, it is important to note how each state handles the matter.
When the Employee Leaves Voluntarily:
- Payment Due Immediately: Illinois (if possible, but not later than next pay day); Oregon (if employee gave 48 hours notice; within five days or next pay period, whichever comes first, if no notice given); West Virginia (if employee gave one pay day's notice; if no notice, by next scheduled pay day)
- Payment Due Within 72 hours: California (or immediately if employee gave at least seventy two hours notice)
- Payment Due Within 5 Working Days: Wyoming
- Payment Due at the Next Pay Period: Alaska (or within three days after employee gives notice); Arizona; Colorado; Connecticut; Delaware; District of Columbia (or within seven days, whichever is sooner); Hawaii (or immediately if employee gave one pay period's notice); Idaho (or within ten days, whichever is sooner); Indiana; Iowa; Kansas; Kentucky (or within fourteen days, whichever is later); Louisiana (or within fifteen days, whichever is sooner); Maine (or within two weeks of demand, whichever is sooner); Maryland; Massachusetts (if no scheduled pay day, then by the following Saturday); Michigan; Minnesota; Montana (or within fifteen days, whichever is sooner); Nebraska (or within two weeks, whichever is sooner); Nevada (or within seven days, whichever is sooner); New Hampshire (or within seventy two hours if employee gave a pay period's notice); New Jersey; New Mexico; New York; North Carolina; North Dakota; Oklahoma; Pennsylvania; Rhode Island; South Dakota (or when employee returns employer's property); Tennessee (or within twenty one days, whichever is later); Texas; Utah; Vermont (if no scheduled pay day, the next Friday); Virginia; Washington; Wisconsin
- First of the Month for Wages Earned in the First Half of Prior Month; Fifteenth of the Month for Wages Earned in Second Half of Prior Month: Ohio
- No Statute: Alabama; Arkansas; Florida; Georgia; Mississippi; Missouri; South Carolina
When the Employee Leaves Involuntarily:
- Payment Due Immediately: California; Colorado; Hawaii (or next business day if conditions do not permit immediate payment); Illinois (if possible, but no later than next scheduled pay day); Massachusetts; Minnesota; Missouri; Montana; Nevada
- Payment Due Next Business Day After Discharge: Connecticut; District of Columbia; Oregon; Utah (within 24 hours)
- Payment Due Within 3 Days From Date of Discharge: Alaska; New Hampshire (specifically, seventy two hours from the discharge); Vermont (within seventy two hours)
- Payment Due Within 5 Days From Date of Discharge: New Mexico; Wyoming (within five working days)
- Payment Due Within 6 Days From Date of Discharge: Texas
- Payment Due Within 7 Days From Date of Discharge: Arizona (or by the next pay period, whichever is sooner); Arkansas
- Payment Due at the Next Scheduled Pay Day: Delaware; Idaho (or within next ten days, whichever is sooner); Indiana; Iowa; Kentucky (or within next fourteen days, whichever is later); Louisiana (or within next fifteen days, whichever is sooner); Maine (or within two weeks after demand, whichever is sooner); Maryland; Michigan; Nebraska (or within two weeks, whichever is sooner); New Jersey; New York; North Carolina; North Dakota (or within fifteen days, whichever is sooner); Oklahoma; Pennsylvania; Rhode Island; South Carolina (or within forty eight hours of discharge, but in no event later than thirty days); South Dakota (or when employee returns employer's property); Tennessee (or within twenty one days, whichever is later); Virginia; Washington; West Virginia (or four business days, whichever is sooner); Wisconsin (or within one month, whichever is sooner)
- First of the Month for Wages Earned in the First Half of Prior Month; Fifteenth of the Month for Wages Earned in Second Half of Prior Month: Ohio
- No Statute: Alabama; Florida; Georgia; Mississippi
Note the differences among states in regard to whether the separation is voluntary or involuntary. It is vital that employers keep these differences in mind or risk being subject to litigation by former employees.
In particular, employers with employees in multiple states need to be aware of these differences. Do not assume that because one state handles the final pay check of employees one way, that means that another state will handle the matter the same way. Remaining mindful of these differences can go a long way in limiting potential litigation.
Special thanks to Nolo for providing some information on the topic: http://www.nolo.com/legal-encyclopedia/final-paycheck-employee-rights-chart-29882.html
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