Overview
This topic provides an overview of state wage and hour laws regarding how soon employees must be paid their final wages after voluntary and involuntary separation. The federal Fair Labor Standards Act does not address the timing of final wage payment. Therefore, only state law requirements apply.
Also, this topic provides some guidance on whether an employer can require forfeiture of voluntary accrued vacation, sick pay, or similar paid time off. It also provides information on whether payout of such voluntary accrued time off is required when employment ends.
Questions Answered
- When must an employer pay final wages to an employee who was discharged?
- When must an employer pay final wages to an employee who resigned?
- What is the definition of wages?
- Can an employer require forfeiture of voluntary accrued vacation, sick pay, or similar paid time off, and if not, is payout required when employment ends?
- Are there special provisions regarding payment of final wages?
Additional Information
Note that if employers seek to meet their mandatory paid sick leave obligations through existing or proposed vacation or paid time off (PTO) policies, additional requirements, including but not limited to accrual, caps, notice, posting, and recordkeeping may arise. Accordingly, in such instances, employers must ensure their policies and practices comply with all applicable statutes, regulations, guidance, and/or caselaw covering paid time-off-from-work benefits. See Paid Sick Leave topic in the Reference Center for more information.
This topic does not cover:
- Payout requirements for mandatory, job-protected paid leave laws enacted by state and local jurisdictions, such as paid sick leave