Layoffs and other situations
Hand-harvest crop workers who quit must be paid within 3 days. Contract employees whose pay can't be determined until the contract ends are paid estimated wages, with final payment in full at the end of the contract. Michigan LEO's guidance states final wages are due on the regular scheduled payday for the period in which the employee quits or is discharged. Source: legislature.mi.gov↗ (opens in a new tab)
Unused vacation and PTO
Depends on written policy or contract: vacation is a fringe benefit, which must be paid according to the terms of a written contract or written policy. No statutory payout requirement otherwise. Source: legislature.mi.gov↗ (opens in a new tab)
If the final paycheck is late
Department may order unpaid wages and fringe benefits plus a 10% annual penalty from notice of complaint; up to twice the unpaid amount as exemplary damages for flagrant or repeated violations; attorney/hearing costs; and a civil penalty up to $1,000 (MCL 408.488). Source: legislature.mi.gov↗ (opens in a new tab)
The law and where to check
The agency: Michigan Department of Labor and Economic Opportunity (LEO), Wage and Hour Division (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 Michigan 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 Michigan employment law guides
- All Michigan employment laws
- Michigan paid sick leave law
- Michigan meal and rest break laws
- Michigan overtime law
- Michigan pay frequency law
- Michigan vacation and PTO payout law
- Michigan new hire reporting
- Michigan 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.
- https://www.legislature.mi.gov/documents/mcl/pdf/mcl-act-390-of-1978.pdf
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-475
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-473
- https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-408-488
- https://www.michigan.gov/leo/bureaus-agencies/ber/wage-and-hour/payment-of-wages-and-fringe-benefits-act-public-act-390-of-1978
- https://www.dol.gov/general/topic/wages/lastpaycheck
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.