Final Paycheck Rules
When an employee leaves your company, one of the most important compliance steps is making sure they receive their final paycheck on time. While many states allow you to wait until the next scheduled payday, a handful of states require you to cut that check immediately on the employee’s very last day of work. For CEOs, especially those operating across multiple states, this is a critical detail to keep top of mind.
In California, the rules are strict. If you terminate an employee, you must hand them their final paycheck on the spot. If an employee resigns and provides at least 72 hours’ notice, their check is also due on the last day. If no notice is given, you get 72 hours, but that still comes up fast.
Colorado has similarly tight requirements. If an employee is terminated, their wages are due immediately if within standard business hours (unique to each company), or within six hours of the start of the next business day. That means there’s very little room for delay, especially if the separation happens midday.
In Massachusetts, employers must also provide final pay on the last day if the separation is involuntary. If an employee resigns voluntarily, you have until the next regular payday.
Nevada is another state that expects immediacy. If an employee is terminated, the paycheck is due right then and there. For resignations, you have until the next payday or within seven days, whichever comes first.
Lastly in Oregon, employees who are terminated must receive final wages no later than the end of the next business day. If an employee resigns with at least 48 hours’ notice, final pay is due on their last day.
Final paychecks may feel like a small administrative detail, but when done right, they protect your company from risk and leave departing employees with a better impression of your leadership. For multi-state employers, consider building a compliance calendar or working with an HR or Payroll partner who keeps track of these rules for you. The takeaway for CEOs is simple: in these states, there’s no grace period. If you aren’t prepared to process final pay quickly, you could find yourself on the hook for waiting-time penalties. Final paycheck laws are rapidly changing, so please check with your state resources before processing your next final paycheck!
