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Employers Facing Layoffs Need to Be Mindful of State Laws Regarding Final Pay

In 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.

820 ILCS 115/5

 

820 ILCS 115/4

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.

Minn Stat, Sec. 181.13

 

Minn. Stat. Sec. 181.14

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.

Nev Rev Stat, Sec. 608.020

 

Nev Rev Stat, Sec. 608.030

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.

NJ Rev Stat, Sec. 34:11-4.3

 

NJ Admin Code, Sec. 12:55-2.4 

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.

43 Pa Stat Ann, Sec. 260.5

 

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

 

SD Codified Laws, Sec. 60-11-11 

Tennessee Pay is due on next scheduled payday or 21 days following termination, whichever occurs last.

 

 

Tenn Code Ann, Sec. 50-2-103 

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.

Tex Lab Code Ann, Sec. 61.014

 

40 Tex Admin Code, Sec. 821.22

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

 

24-090-003 Vt Code R, Sec. VII 

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.

Wyo Stat Ann, Sec. 27-4-101

 

Wyo Stat Ann, Sec. 27-4-104

* This chart was prepared with the assistance of law clerk Eduardo Quiroga.

©2020 Epstein Becker & Green, P.C. All rights reserved.National Law Review, Volume X, Number 79

TRENDING LEGAL ANALYSIS


About this Author

Nancy Gunzenhauser, Labor Employment Attorney, Epstein Becker Law Firm
Associate

NANCY L. GUNZENHAUSER is an Associate in the Labor and Employment practice, in the New York office of Epstein Becker Green.

Ms. Gunzenhauser:

  • Counsels clients on compliance with EEO laws, the Americans with Disabilities Act, the Family and Medical Leave Act, worker classification issues, and other federal, state, and local statutes governing the workplace
  • Advises employers in all facets of the employment relationship, from pre-employment considerations and hiring to terminations and post...
212-351-3758
Michael S. Kun, epstein becker green, los angeles, labor, employment
Member

Mr. Kun's practice includes:

  • Litigating more than six dozen class actions and collective actions in California, New York, Georgia and Maryland involving a variety of employment issues, including discrimination and wage-hour claims, and successfully defeating motions for class certification on such claims. The sizes of the putative classes have ranged from 75 to approximately 15,000 employees.

  • Litigating a wide variety of employment-related claims, including discrimination, harassment, retaliation, breach of contract, misclassification, overtime, meal and rest breaks, restrictive covenants, whistleblower, and defamation cases. Mr. Kun has taken more than a dozen of these cases to trial.

  • Providing counseling and management training on employment issues. 

  •  Drafting and review of employment agreements and restrictive covenants. 

310-557-9501