Final paycheck

What does “final paycheck” mean?

A final paycheck is the last payment owed to a departing employee, and California sets specific deadlines for it that depend on whether the employee quit or was discharged.

An employee who is discharged is generally owed their final wages immediately at the time of termination. An employee who resigns without notice is generally owed them within 72 hours; with notice, on the last day.

Final wages include accrued unused vacation or PTO, which California treats as earned wages rather than a benefit that can be forfeited.

Why it matters to an employer

Late final pay can trigger waiting time penalties that accrue daily, which is why a termination decision and a payroll decision have to be made together rather than in sequence.