Unpaid Wages
Learn essential final paycheck laws: when must employer pay last paycheck, what counts as unpaid final wages, and rules for payout of unused PTO and unused vacation. If your employer didn't pay last paycheck, follow our step-by-step enforcement guide, sample calculations, and state-by-state resources to recover owed wages and penalties — fast, practical legal options today.
Estimated reading time: 16 minutes
Key Takeaways
Final paycheck laws are state-specific and determine the deadline and contents of a departing employee’s last pay, including earned wages and, in some states, PTO/vacation.
When must employer pay last paycheck depends on the state and whether you were fired, laid off, or quit with/without notice.
Unpaid final wages include all earned compensation through your last day—regular hours, overtime, commissions, earned bonuses, and in many jurisdictions accrued PTO/vacation.
If an employer didn’t pay last paycheck, escalate: written request, documentation, state wage claim, then small claims or legal counsel.
Penalties for nonpayment can include waiting-time penalties, interest, and multiplied damages in some states; check your state law.
Table of Contents
How to Read This Article
When Must an Employer Pay the Last Paycheck? — Final Paycheck Laws by State
What Counts as Unpaid Final Wages?
Payout of Unused PTO and Unused Vacation Payout Laws
Employer Didn’t Pay Last Paycheck — Step-by-Step Actions
Sample Calculation — How to Compute Your Final Paycheck
Employer Obligations and Penalties for Nonpayment
State-by-State Resources & How to Check Your State Law
Templates & Downloads (What to Include in Your Own Tools)
Real-World Scenarios / Short Case Studies
Summary and Key Takeaways
Further Reading and Official Resources
Conclusion
FAQ
Final paycheck laws determine when and how employers must pay employees their last wages after separation. These are state-specific statutes and regulations that dictate the timing and content of the last wage payment due to departing employees, including earned wages, overtime, commissions, and in many states accrued PTO/vacation. Multiple national guides emphasize that these are state rules designed to protect worker pay and ensure employer compliance, including overviews from Rippling’s final paycheck overview, OysterHR’s state-by-state guide, and Paycom’s state-by-state summary.
These rules matter because they protect employees’ rights to timely and full compensation and help employers avoid penalties for late or incomplete payments. Since requirements vary by state, this guide explains when must employer pay last paycheck, what counts as unpaid final wages, how payout of unused PTO/vacation works, and what to do if your employer misses the deadline or withholds part of your final pay. We also include practical steps to enforce your rights and resources to verify your state’s exact rules.
How to Read This Article
Timing rules: when must employer pay last paycheck after termination, layoff, or resignation.
What unpaid final wages include: hours, overtime, commissions, bonuses, and possible PTO/vacation.
Payout of unused PTO and unused vacation payout laws, with state examples.
Step-by-step enforcement if your employer didn’t pay last paycheck.
Sample calculation to estimate what you’re owed.
State-by-state resources to confirm your exact deadlines.
Short case studies and FAQs to answer common questions about final paycheck laws.
When Must an Employer Pay the Last Paycheck? — Final Paycheck Laws by State
When people ask “when must employer pay last paycheck,” they mean the legally mandated deadline for delivering the final paycheck after an employee’s last day. That deadline varies by state and often depends on how the separation occurred—firing, layoff, or resignation with or without notice. National sources reinforce these distinctions and the state-by-state nature of the rules, including Rippling’s overview of final pay obligations, OysterHR’s state guide, and Paycom’s compilation.
General patterns appear across states. Some require immediate payment upon termination. Others allow payment by the next regular payday. Some specify a fixed number of days after separation. All three patterns are noted in national references, which stress that the exact timing is a creature of state law and sometimes agency guidance. See the breakdowns in OysterHR’s interactive guide, confirmed by Rippling and Paycom.
The type of separation usually changes which deadline applies:
Fired/terminated: employer-initiated, involuntary end of employment.
Laid off/reduction-in-force: employer-initiated, workforce-driven separation.
Quit/resignation with notice: employee-initiated departure, with advance notice (written or verbal, as the state may recognize).
Quit/resignation without notice: employee departs immediately.
These categories matter because deadlines often differ for termination versus resignation, and some states further distinguish between resignations with or without notice. This structure appears in multiple overviews, including Rippling’s final paycheck guide, OysterHR’s state list, and Paycom’s summary.
Examples: State Timing Rules
These examples are not exhaustive—always verify your state’s law.
California: If an employee is fired, final wages are due immediately at termination. If an employee quits, wages are due within 72 hours unless the employee gave 72 hours’ notice, in which case payment is due at the time of quitting. See OysterHR’s state guide and Rippling’s overview.
Alaska: Final pay is due within three working days after termination; if the employee resigns, payment is made on the next regular payday that occurs at least three days after the last workday. Source: OysterHR.
Texas and New York: Some states permit payment on the next regular payday rather than immediate payment. See OysterHR’s and Paycom’s state-by-state breakdowns.
States without a specific timing statute: In some jurisdictions, there is no separate final paycheck timing rule, so general payroll timing regulations apply. Check your state page via OysterHR or Paycom.
If your employer delays payment, your next steps can include a written request, a wage claim with your state agency, and, if necessary, court action. For a detailed filing roadmap, see our guide on how to file a wage claim.
What Counts as Unpaid Final Wages?
Unpaid final wages are any compensation you earned but did not receive by your last date of work. This includes regular wages for hours worked, unpaid overtime, commissions that have been earned under your plan, earned and vested bonuses, and in many jurisdictions accrued PTO/vacation if your state or employer policy requires payout. See the explanations in Rippling’s overview and Paycom’s guide.
Wage statutes typically require employers to pay all earned wages promptly at separation, subject to state deadlines. Separate federal rules under the FLSA cover minimum wage and overtime; if you worked overtime and were not paid time-and-a-half when required, that unpaid overtime is still part of what you are owed in your final pay. Learn more about overtime claims in our resource on unpaid overtime laws and recovery.
Common items to check in your final paycheck:
Hours worked but not paid: Every hour you worked up to your last day must be included.
Overtime earned but unpaid: Overtime eligible employees should receive time-and-a-half (or the applicable premium) for qualifying hours; misclassification disputes can affect this. If you believe you were misclassified, see our guide for workers misclassified as an independent contractor.
Commissions earned: If your commission plan deems commissions “earned” at a certain milestone (e.g., invoicing or payment received), those amounts are part of your final wages when the milestone is met. Disputes about clawbacks or calculations are common—see options in our resource on unpaid commissions disputes.
Bonuses that are earned and vested: If your policy or contract says a bonus is earned by certain performance or date criteria, it should be included once those conditions are satisfied.
Accrued PTO/vacation where law or policy requires payout: In some states, these balances are treated like wages and must be paid at separation.
Expense reimbursements owed: If your employer’s policy or law requires reimbursement of business expenses (e.g., mileage, supplies), ensure those amounts are processed; see our guide on recovering unpaid business expense reimbursements.
If your employer disputes what you are owed or withholds payment, review your documentation and escalate using the steps below. For larger or complex claims, consider speaking with an unpaid wages lawyer.
Payout of Unused PTO and Unused Vacation Payout Laws
Payout of unused PTO and unused vacation payout laws vary by state. Some states require payout of accrued, unused vacation or PTO as wages, while others do not unless the employer policy promises it. The state-by-state differences are summarized by Rippling, OysterHR, and Paycom.
Definitions that matter:
PTO: paid time off policies that combine vacation, sick leave and personal days into a single bucket.
Vacation accrual: time earned under an accrual system that may be tracked in hours or days.
Vesting and “use-it-or-lose-it”: vesting refers to when accrued time becomes earned and nonforfeitable. Many states disallow “use-it-or-lose-it” where it causes forfeiture of earned wages. Always check your state’s rules.
Key state distinctions:
California and Illinois: accrued and unused vacation must be paid out as wages upon termination. See Rippling’s overview, OysterHR’s state guide, and Paycom’s compilation.
Florida and New Jersey: no requirement to pay out unused vacation unless the employer’s policy or contract says otherwise. See Rippling and Paycom.
General rule in payout states: when required, PTO/vacation is treated as wages and must be included in the final paycheck. See Rippling and Paycom.
Employer policy vs. statute: Even in states that do not require payout by law, an employer’s written promise to pay unused vacation/PTO can create a contractual obligation. Check your handbook, offer letter, and any written plan documents.
Quick checklist to decide whether PTO is payable at separation:
Is there a state law requiring payout of accrued, unused vacation/PTO?
Does your written policy or employment agreement promise payout?
Has the time been earned and vested by your separation date?
Are any forfeiture or “use-it-or-lose-it” provisions valid under your state’s law?
If your unused PTO was not paid and your state treats it as wages, include those hours in your wage claim calculations and documentation. For paid sick leave rules that can intersect with PTO policies, review our guide to paid sick leave rights and state PTO laws.
Employer Didn’t Pay Last Paycheck — Step-by-Step Actions
If an employer didn’t pay last paycheck, use these steps to escalate efficiently—start internally, move to state enforcement, then consider court or legal counsel. National references recommend this progression and explain where to check the governing timelines: OysterHR and Paycom.
Step 1 — Contact the employer in writing
Send a concise written request to payroll or HR that identifies your last day worked, the pay periods involved, and each category of unpaid final wages you believe is owed (regular pay, overtime, commissions, accrued PTO where applicable). State your total calculation and a reasonable payment deadline.
Attach supporting records such as pay stubs, timesheets, commission plans, and written PTO/vacation policies. Keep copies of everything you send and any responses you receive.
If you have potential overtime claims or misclassification issues that affect your total due, these resources can help you frame your request: unpaid overtime laws and recovery and exempt vs. nonexempt employee rights.
Step 2 — Document everything
Gather and save:
Recent pay stubs, timecards, clock-in/out logs, and your final timesheet.
Offer letter, employment agreement, commission plan, and the employee handbook with PTO/vacation policy.
Emails or texts about hours, schedules, PTO balances, commissions, or bonus terms.
Any final pay statement provided, even if incomplete.
Preserve files as PDFs or screenshots, record dates of communications, and note the names and roles of company contacts. Organized documentation strengthens your claim.
Step 3 — File a wage claim with your state labor department
If internal efforts fail, file a wage claim with your state’s wage and hour division. You will complete a claim form, attach documentation, and the agency will investigate. Many agencies can order back wages and assess penalties against employers that violate final paycheck laws. See the state-by-state guidance in OysterHR and Paycom for how timing rules and remedies vary.
For process steps, evidence checklists, and timelines, use our step-by-step guide on how to file a wage claim.
To find your state labor office, search the official website of your state’s department of labor or wage & hour division, and follow the posted complaint instructions.
Step 4 — Consider small claims or a civil action
If the agency process does not resolve your case or the amount is appropriate for small claims court, you can file a small-claims action. For larger or complex cases, consult a wage-and-hour attorney. Agency complaints can be faster and low-cost, but private suits may allow additional damages in some jurisdictions. National overviews note that legal remedies vary and may include penalties for delays or willful nonpayment. See Paycom’s state summary and Rippling’s overview of consequences.
Prepare a simple file with your documents, calculations, and a timeline of requests and responses. If you are pursuing unpaid overtime or group claims, you may also explore options discussed in our FLSA collective action guide.
Step 5 — Seek legal advice when necessary
Consult an attorney when the employer disputes your calculations, the amounts are significant, you suspect willful withholding, or you face retaliation. In some states, statutes allow monetary penalties, interest, and even doubled or tripled damages for noncompliance, as summarized by Rippling and Paycom. For individual guidance, see how an unpaid wages lawyer can help recover pay.
Sample Calculation — How to Compute Your Final Paycheck
Example facts: Your last day worked is 8/31. Your regular hourly wage is $20. In your final pay period, you worked 30 regular hours and 10 overtime hours (time-and-a-half). Your accrued PTO balance is 24 hours, and your state requires payout of accrued vacation/PTO.
Regular pay = 30 hours × $20 = $600.
Overtime pay = 10 hours × $30 (1.5 × $20) = $300.
PTO payout = 24 hours × $20 = $480.
Gross final pay = $600 + $300 + $480 = $1,380.
Authorized deductions may include taxes, benefit premiums, or wage garnishments. Employers cannot make unlawful deductions that violate wage laws or reduce pay below required minimum wages; state rules vary. Where PTO/vacation must be paid out, those hours are treated like wages and included in the final check, as summarized by Rippling and Paycom.
If you had unpaid overtime across multiple pay periods, add that amount to the total owed. For help identifying overtime underpayments, review our unpaid overtime recovery guide.
Employer Obligations and Penalties for Nonpayment
Employers that fail to pay final wages on time can face administrative penalties, interest, civil damages, and attorney’s fees under various state laws. Some jurisdictions allow waiting-time penalties that accrue daily or statutory damages that double or triple the unpaid amount. Check your state’s rules for exact remedies and deadlines summarized by Rippling and Paycom.
Basic compliance steps for employers:
Maintain clear written policies for final pay, PTO accrual, and payout rules.
Process final payroll promptly by the applicable state deadline, distinguishing termination from resignation timelines.
Keep accurate time, overtime, commission, and accrual records to avoid disputes about unpaid final wages or payout of unused PTO.
State-by-State Resources & How to Check Your State Law
Because final paycheck laws are state-specific, verify your exact timing rules, required contents of the final check, and whether PTO/vacation must be paid out in your state. Start with national summaries for orientation and then confirm on your state’s official labor department page:
Orientation and examples: Rippling’s final paycheck overview.
State-by-state timing and PTO snapshots: OysterHR’s final paycheck laws by state.
Alternative state summaries: Paycom’s final paycheck laws by state.
How to confirm state rules:
Find your state’s department of labor or wage and hour division site.
Look for pages on “final paycheck,” “wages upon termination,” or “wage payment upon separation.”
Confirm the deadline for termination versus resignation, and verify whether PTO or vacation must be paid.
Note any penalties or waiting-time damages for late payment and the procedure to file a claim.
If you are preparing to file, this step-by-step guide explains documents to gather, where to submit, and what timelines to expect: how to file a wage claim.
Templates & Downloads (What to Include in Your Own Tools)
While forms and letters differ by state and situation, your self-prepared tools should include the following components:
A written wage demand that identifies your last day worked, what categories of pay are owed (regular, overtime, commissions, PTO if required), your total calculation, and a reasonable payment deadline.
A documentation checklist: recent pay stubs, time records, final timesheet, offer/contract, commission plan, handbook and PTO policy, emails about hours or balances, and any final pay statements.
A simple calculation worksheet that lists each category (regular, overtime, PTO), applicable rates, hours, and totals, with space for authorized deductions.
For guided step-by-step filing, including what to attach and how agencies process claims, see our resource on how to file a wage claim.
Real-World Scenarios / Short Case Studies
Vignette 1: Terminated employee in California (immediate pay required)
Facts: A California worker is fired on a Tuesday. At termination, the employer does not provide final wages and later issues a partial check without paying out accrued vacation.
Rules: California requires immediate payment upon termination and treats accrued and unused vacation as wages that must be paid out at separation, per state summaries in OysterHR and Rippling.
Actions: The employee documents hours, vacation balance, and policy language; sends a written demand; files a state wage claim when payment remains incomplete; and seeks penalties for delayed final wages, consistent with the consequences outlined in Rippling’s overview.
Vignette 2: Resignation in a “next regular payday” state
Facts: An employee resigns without notice in a state where wages upon resignation are due on the next regular payday (a rule that applies in states such as Texas or New York, as summarized by OysterHR and Paycom).
Rules: The employer may lawfully pay on the next regular payday but must include all earned wages, overtime, and any required PTO payout under state law or policy.
Actions: If the check does not arrive by the next payday or is incomplete, the worker sends a written request and files a state wage claim for unpaid final wages. The escalation path mirrors the enforcement process recommended by OysterHR and Paycom.
Vignette 3: Policy promises PTO payout in a state that does not require it
Facts: A company in a state that does not mandate vacation payout has a handbook clause promising payout of accrued, unused PTO at separation. The final paycheck excludes PTO.
Rules: Even where statutes do not require payout, a written policy promise may create a contractual obligation. National guides note policy-versus-statute distinctions and the importance of written policies. See Rippling and Paycom.
Actions: The employee provides the policy, calculates the owed hours, and files a wage claim or suit to enforce the promise. If the amount is significant or disputed, counsel may be appropriate, as described in our resource on how unpaid wages lawyers pursue recovery.
Summary and Key Takeaways
Final paycheck deadlines vary by state and by type of separation (termination, layoff, resignation), per state summaries from Rippling, OysterHR, and Paycom.
Employees are entitled to all earned wages—regular hours, overtime, commissions, and earned bonuses; PTO/vacation may be payable depending on state law or employer promises, as reflected in Rippling and Paycom.
If an employer didn’t pay last paycheck, escalate: written demand, documentation, state wage claim, and small claims or counsel if needed, consistent with recommendations in OysterHR and Paycom.
Confirm the exact timing, PTO payout rules, and penalties on your state’s official labor department site, and consider legal advice for complex or high-value disputes.
Further Reading and Official Resources
For filing steps and documentation tips, see our comprehensive guide on how to file a wage claim. For unpaid overtime issues that often arise during final pay disputes, read our resource on unpaid overtime laws.
Conclusion
Final paycheck laws exist to ensure workers receive prompt and complete payment when employment ends. Because the rules vary widely by state and depend on how the separation occurred, always verify the exact deadline and whether PTO/vacation must be paid, then act quickly if your final check is late or incomplete. With clear documentation and the proper enforcement path, you can recover unpaid final wages and protect your rights.
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FAQ
When must an employer pay my last paycheck?
It depends on your state and the type of separation. Some states require immediate payment at termination, others allow payment by the next regular payday, and some specify a fixed number of days. Resignation timelines can differ, including whether you gave notice. See state patterns summarized by Rippling, OysterHR, and Paycom.
Is accrued vacation/PTO paid out on termination?
In some states—such as California and Illinois—accrued and unused vacation must be paid out as wages at separation. Other states do not require payout unless an employer policy promises it. Check your state law and your written policy, as summarized by Rippling, OysterHR, and Paycom.
What should I do if my employer didn’t pay my last paycheck?
Send a written request detailing what is owed, collect and preserve your documentation, file a wage claim with your state labor department if needed, and consider small claims or legal counsel for larger or disputed cases. See filing guidance in OysterHR’s state guide and Paycom’s overview, plus our step-by-step article on how to file a wage claim.
How long do I have to file a wage claim?
Deadlines vary by state and may differ for wage payment, overtime, and penalty claims. Check your state’s official labor department website and consider consulting an employment attorney for guidance tailored to your situation. Overview references include Rippling, OysterHR, and Paycom.
What counts as unpaid final wages?
All earned compensation through your last day: regular hours, unpaid overtime, earned commissions and bonuses, and in many jurisdictions accrued PTO/vacation if required by law or promised by policy. See overviews from Rippling and Paycom.
This article provides general information and does not constitute legal advice. Laws change and vary by state—consult your state labor department or an employment attorney for specific legal guidance about final paycheck laws.
