iIn the coming days, weeks and perhaps months, many employers will have difficult decisions to make about their operations and their workforces. With their operations shutting down or running at less than capacity, many employers will decide that they must lay off employees.
It’s a decision that no employer wishes for or enjoys. And it is one that poses some risks.
Not only must employers take steps to ensure that layoff decisions are made in a manner that does not adversely impact protect groups, but employers need to be mindful of the various state laws governing when final wages must be paid to terminated employees. Failure to provide final pay to terminated employees in compliance with state laws can lead to significant penalties and litigation.
The chart below hopefully will be of help to employers that are facing layoffs.
| State | Termination Pay Requirements | Relevant Statutes |
| Alabama | No relevant statutory provisions. Recommend within next scheduled payday. | No relevant statutory provisions |
| Alaska |
If employer-initiated termination, pay is due within three working days of termination.
If employee-initiated termination, pay is due on next scheduled payday that is at least three days from date of notice. |
Alaska Stat, Sec. 23.05.140 |
| Arizona |
If employer-initiated termination, pay is due within seven working days or next payday, whichever is sooner.
If employee-initiated termination, pay is due on next scheduled payday. |
Ariz Rev Stat Ann, Sec. 23-353 |
| Arkansas | Pay is due on next scheduled payday. | Ark Code Ann, Sec.11-4-405 |
| California |
If employer-initiated termination, pay is due immediately upon termination.
If employee-initiated termination, pay is due within 72 hours of resignation. |
Cal Lab Code, Sec. 201 |
| Colorado |
If employer-initiated termination, pay is due immediately upon termination, or within six hours of start of next workday, if payroll unit is closed; 24 hours if unit is offsite.
If employee-initiated termination, pay is due on next scheduled payday. |
Colo Rev Stat, Sec. 8-4-109 |
| Connecticut |
If employer-initiated termination, pay is due no later than next business day after termination.
If employee-initiated termination, pay is due on next scheduled payday. |
Conn Gen Stat, Sec. 31-71c |
| Delaware | Pay is due on next scheduled payday through regular method, or by mail if requested by employee. | Del Code Ann, tit. 19, Sec. 1103 |
| District of Columbia |
If employer-initiated termination, pay is no later than next working day after termination.
If employee-initiated termination, pay is due on the next scheduled payday or within seven days, whichever is earlier. |
DC Code Ann, Sec. 32-1303 |
| Florida | No relevant statutory provisions. Recommend within next scheduled payday. | No relevant statutory provisions |
| Georgia | No relevant statutory provisions. Recommend within next scheduled payday. | No relevant statutory provisions |
| Hawaii |
If employer-initiated termination, pay is due immediately upon termination, or by the next working day.
If employee-initiated termination, pay is due on next scheduled payday; however, if one week’s notice is provided, pay is due upon termination. |
Haw Rev Stat, Sec. 388-3 |
| Idaho | Pay is due on next scheduled payday or within 10 days (excluding holidays and weekends), whichever occurs first. If requested by employee in writing, pay is due within 48 hours of request (excluding holidays and weekends). | Idaho Code Ann, Sec. 45-606 |
| Illinois | Pay is due at time of termination if possible, but no later than next scheduled payday. |
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| Indiana | Pay is due on next scheduled payday. | Ind Code, Sec. 22-2-9-2 |
| Iowa | Pay is due on next scheduled payday. | Iowa Code, Sec. 91A.4 |
| Kansas | Pay is due on next scheduled payday. | Kan Stat Ann, Sec. 44-315 |
| Kentucky | Pay is due on next scheduled payday or 14 days following termination, whichever occurs last. | Ky Rev Stat Ann, Sec. 337.055 |
| Louisiana | Pay is due on next scheduled payday or within 15 days following termination, whichever occurs first. | La Rev Stat Ann, Sec. 23:631 |
| Maine | Pay is due on next scheduled payday. | Me Rev Stat Ann, tit. 26, Sec. 626 |
| Maryland | Pay is due on next scheduled payday. | Md Code Ann, Lab & Empl, Sec. 3-505 |
| Massachusetts |
If employer-initiated termination, pay is due immediately upon termination.
If employee-initiated termination, pay is due on next scheduled payday. |
Mass Gen Laws, Ch. 149, Sec. 148 |
| Michigan | Pay is due on next scheduled payday. | Mich Comp Laws, Sec. 408.475 |
| Minnesota |
If employer-initiated termination, pay is due within 24 hours upon termination.
If employee-initiated termination, pay is due on next scheduled payday. |
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| Mississippi | No relevant statutory provisions. Recommend within next scheduled payday. | No relevant statutory provisions |
| Missouri | Pay is due immediately upon termination. | Mo Rev Stat, Sec. 290.110 |
| Montana |
If employer-initiated termination, pay is due immediately upon termination, unless employer’s written policy extends time to next scheduled payday or within 15 days, whichever occurs first.
If employee-initiated termination, pay is due on the next scheduled payday or within 15 days, whichever occurs first. |
Mont Code Ann, Sec. 39-3-205 |
| Nebraska | Pay is due on next scheduled payday or within two weeks, whichever occurs first. | Neb Rev Stat Ann, Sec. 48-1230 |
| Nevada |
If employer-initiated termination, pay is due immediately upon termination.
If employee-initiated termination, pay is due on next scheduled payday or seven days after termination, whichever is earlier. |
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| New Hampshire |
If employer-initiated termination, pay is due within 72 hours of termination.
If employee-initiated termination, pay is due on next scheduled payday; however, if the employee provided notice, pay is due within 72 hours of termination. |
NH Rev Stat Ann, Sec. 275:44 |
| New Jersey | Pay is due on next scheduled payday. |
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| New Mexico |
If employer-initiated termination, pay is due within 5 days of termination.
If employee-initiated termination, pay is due within 10 days of termination. |
NM Stat Ann, Sec. 50-4-4 |
| New York | Pay is due on next scheduled payday. | NY Lab Law, Sec. 191 |
| North Carolina | Pay is due on next scheduled payday. | NC Gen Stat, Sec. 95-25.7 |
| North Dakota | Pay is due on next scheduled payday. | ND Cent Code, Sec. 34-14-03 |
| Ohio | Pay is due on next scheduled payday. | Ohio Rev Code, Sec. 4113.15 |
| Oklahoma | Pay is due on next scheduled payday. | Okla Stat, tit. 40, Sec. 165.3 |
| Oregon |
If employer-initiated termination, pay is due on the next business day following termination.
If employee-initiated termination, pay is due within 5 days; however, if the employee provided notice, pay is due within 48 hours of termination or next scheduled payday, whichever occurs first. |
Or Rev Stat, Sec. 652.140 |
| Pennsylvania | Pay is due on next scheduled payday. If requested by the employee, the wages must be paid by certified mail. |
See Section 5(a) |
| Rhode Island | Pay is due on next scheduled payday. | RI Gen Laws, Sec. 28-14-4 |
| South Carolina | Pay is due within 48 hours, or next scheduled payday, not to exceed 30 days. | SC Code Ann, Sec. 41-10-50 |
| South Dakota | Pay is due on next scheduled payday. |
SD Codified Laws, Sec. 60-11-10
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| Tennessee | Pay is due on next scheduled payday or 21 days following termination, whichever occurs last. |
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| Texas |
If employer-initiated termination, pay is due pay is due within six 6 calendar days of termination.
If employee-initiated termination, pay is due on next scheduled payday. |
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| Utah |
If employer-initiated termination, pay is due within 24 hours of termination.
If employee-initiated termination, pay is due on next scheduled payday. |
Utah Code Ann, Sec. 34-28-5 |
| Vermont |
If employer-initiated termination, pay is due within 72 hours of termination.
If employee-initiated termination, pay is due on next scheduled payday, or the following Friday if no regularly pay day. |
Vt Stat Ann, tit. 21, Sec. 342
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| Virginia | Pay is due on next scheduled payday. | Va Code Ann, Sec. 40.1-29 |
| Washington | Pay is due on next scheduled payday. | Wash Rev Code, Sec. 49.48.010 |
| West Virginia | Pay is due on next scheduled payday | W Va Code Ann, Sec. 21-5-4 |
| Wisconsin |
Pay is due on next scheduled payday.
If ceasing business operation in whole or in part, within 24 hours of termination at usual place of payment. |
Wis Stat, Sec. 109.03 |
| Wyoming | Pay is due on next scheduled payday. |
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* This chart was prepared with the assistance of law clerk Eduardo Quiroga.
