Layoffs and other situations
A layoff is a termination and is treated like a discharge. Special rules: seasonal fruit, fish or vegetable curing, canning or drying workers within 72 hours of layoff; oil drilling workers within 24 hours (excluding weekends and holidays); certain motion picture workers by the next regular payday (Lab. Code §§ 201, 201.5, 201.7). Source: leginfo.legislature.ca.gov↗ (opens in a new tab)
Unused vacation and PTO
Required. All earned, unused vacation must be paid at the final rate of pay; use-it-or-lose-it forfeiture is not allowed (reasonable accrual caps are). A collective bargaining agreement may say otherwise. Source: dir.ca.gov↗ (opens in a new tab)
If the final paycheck is late
Willfully late final pay triggers a waiting time penalty: the employee's daily rate for each day unpaid, up to 30 days. Undisputed wages must be paid without requiring a release. Source: dir.ca.gov↗ (opens in a new tab)
The law and where to check
The law: Cal. Lab. Code §§ 201–203, 227.3 (opens in a new tab)
The agency: California Labor Commissioner's Office (DLSE) (opens in a new tab)
What federal law says
The federal Fair Labor Standards Act does not require employers to give a final paycheck immediately. The U.S. Department of Labor says an employee who has not received final pay by the regular payday for their last pay period can contact its Wage and Hour Division or the state labor department. Source: U.S. Department of Labor↗ (opens in a new tab)
Final paycheck checklist for California employers
A simple order of work, based on the rules above. It is not a legal checklist.
- Write down how the job ended: fired or let go, or the employee quit. If they quit, note whether and when they gave notice.
- Find the deadline for that situation in the table above.
- Add up all hours worked up to the last day, including any overtime.
- Check your written vacation or PTO policy and the vacation rule above.
- Add any commission or bonus that was earned, using the rules above.
- Pay on time by your usual method, or by mail if the rules above allow it and the employee asks.
- Keep a dated record of what you paid and when.
More California employment law guides
- All California employment laws
- California paid sick leave law
- California meal and rest break laws
- California overtime law
- California pay frequency law
- California vacation and PTO payout law
- California new hire reporting
- California at-will exceptions
Final paycheck laws in other states
See every state on one page, or pick a state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
All official government sources, last checked October 19, 2026.
Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.
Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.