New York Final Paycheck Laws: When You Must Be Paid After Termination (2025)
When you leave a job in New York—whether you quit, get fired, or are laid off—you have the right to receive your final paycheck on time. New York final paycheck laws are straightforward: your employer must pay you all wages owed by the next regular payday, regardless of the reason for your departure.
Unlike some states that require immediate payment upon termination, New York follows a “next regular payday” rule. This means if you normally get paid every two weeks on Friday, your final paycheck is due on the next scheduled Friday after your last day of work. Your employer cannot delay this payment or withhold your wages as punishment for leaving.
Your final paycheck must include all wages you earned, including overtime, unused vacation pay (if your employer’s policy requires payout), earned commissions, and any other compensation you’re owed. Understanding these New York final paycheck laws helps you recognize when your rights are violated and take action to recover unpaid wages.
When Is Your Final Paycheck Due in New York?
New York Labor Law requires employers to pay terminated or departing employees by the next regular payday after termination. This rule applies whether you were fired, laid off, or voluntarily quit your job.
The timing depends on your normal pay schedule:
- Weekly pay schedule: If you’re normally paid every Friday, your final check is due the Friday after your last day
- Bi-weekly schedule: If you’re paid every other Thursday, your final check is due on the next scheduled Thursday
- Semi-monthly schedule: If you’re paid on the 15th and last day of each month, your final check is due on whichever date comes next
The reason for leaving doesn’t matter. Some states have different rules for employees who quit versus those who are fired. New York does not. You get paid on the next regular payday either way.
Your employer cannot create a special “final paycheck” schedule that delays payment beyond the normal payday. If your last day is Monday and payday is Friday, you should receive your final wages on Friday—not the following week.
Example: Maria works at a restaurant in Buffalo and is paid bi-weekly every other Friday. She is terminated on Tuesday, March 5th. The restaurant’s next regular payday is Friday, March 8th. Maria’s final paycheck must be issued by March 8th, even though she only worked two days of that pay period.
If your employer misses this deadline, you may have grounds to file a wage claim with the New York Department of Labor or pursue legal action for unpaid wages.
What Must Be Included in Your Final Paycheck?
Your final paycheck in New York must include every type of compensation you earned through your last day of work. This is not just your hourly wages or salary—it’s the complete picture of what your employer owes you.
Your final paycheck must include:
All hours worked: Every hour you worked through your final day, including overtime if you’re eligible. If you worked a partial pay period, you must be paid for those days.
Unused vacation time: If your employer’s policy or employment contract promises to pay out accrued, unused vacation upon termination, this amount must be included. New York law doesn’t require employers to offer paid vacation, but if they do, they must follow their own policy.
Earned commissions: Any commissions you earned according to your commission agreement or company policy must be paid. Employers cannot forfeit commissions you already earned just because you’re leaving.
Bonuses earned: If you met the requirements for a bonus before your termination date, that bonus must be paid. However, bonuses that are purely discretionary or require employment on the payment date may not be owed.
Expense reimbursements: Any business expenses you paid out of pocket that your employer hasn’t yet reimbursed must be included in your final pay.
Accrued benefits: Depending on your employment contract or company policy, you may be entitled to payment for other accrued benefits.
Your final paycheck should NOT include:
- Severance pay (this is separate and governed by different rules)
- Future vacation you haven’t yet earned
- Speculative commissions on deals that haven’t closed
- Discretionary bonuses not yet earned
Example: James works as a salesperson in Manhattan earning a base salary plus commission. When he resigns, his final paycheck includes his salary for the final week worked, $2,400 in commissions from sales that closed the previous month, and $800 in unused vacation pay (his employer’s policy states unused vacation is paid out). It does not include a $500 reimbursement he submitted two days before leaving—his employer must pay this separately but cannot delay it unreasonably.
Understanding what belongs in your final paycheck helps you verify that your employer paid you correctly and identify any shortages that need to be addressed.
Accrued Vacation Pay: When Is It Required?
New York law does not require employers to provide paid vacation time. However, if your employer chooses to offer vacation benefits, they must follow their own policy—including rules about paying out unused vacation when you leave.
When vacation payout is required:
If your employer’s written policy, employee handbook, or employment contract states that unused vacation will be paid out upon termination, then they must pay it. This becomes part of your wage agreement.
If your employer has a practice of paying out unused vacation, even without a written policy, you may still be entitled to this payment based on established custom.
“Use it or lose it” policies:
New York allows employers to implement “use it or lose it” policies where vacation time expires if not used by a certain date. However, these policies must be:
- Clearly communicated to employees in writing
- Applied consistently to all employees
- Reasonable in their terms
Even with a use-it-or-lose-it policy, employers must provide reasonable opportunity to use vacation time before it expires. An employer cannot refuse vacation requests and then claim the time is forfeited.
Forfeiture provisions:
Some employers include forfeiture clauses stating that employees who quit without giving proper notice lose their accrued vacation. New York courts have viewed these provisions with skepticism. While they may be enforceable if clearly communicated and reasonable, they cannot be used to punish employees or withhold earned wages arbitrarily.
The New York Department of Labor considers accrued vacation time to be a form of wages once earned. Employers cannot unilaterally change the terms after you’ve earned the time.
Example: Linda works for a company in Rochester with a policy that states: “Employees accrue 10 vacation days per year. Unused vacation is paid out at termination up to a maximum of 10 days.” When Linda resigns with 7 unused vacation days, her employer must pay her for those 7 days in her final paycheck.
Contrast example: Michael’s employer has a written policy stating: “Vacation time must be used within the calendar year. Any unused time expires on December 31st and will not be paid out.” If Michael leaves employment in November with unused vacation from earlier in the year, and the policy was clearly communicated, the employer may not owe payout for that expired time. However, Michael would still be entitled to vacation he accrued during the current year up to his departure date, depending on how the policy is written.
If your employer refuses to pay out vacation you believe you’re entitled to, review your employee handbook, offer letter, or any written policies you received when hired.
Direct Deposit of Final Paycheck
Many New York employers use direct deposit for regular paychecks. The same method can generally be used for your final paycheck, but there are important timing considerations.
When direct deposit is allowed:
If you previously authorized your employer to pay you via direct deposit, they can use this method for your final paycheck. The payment must still be made by the next regular payday.
Your employer must notify you when the direct deposit will occur. This is particularly important for your final check since you may not be checking your bank account with the same routine once you’ve left the job.
Advance notification:
Your employer should tell you the exact date the direct deposit will be made and the amount. This allows you to verify that payment was received on time and for the correct amount.
If the direct deposit date falls after the regular payday, this violates New York law—even if your employer claims processing delays.
When a physical check may be required:
If you closed the bank account linked to direct deposit or revoked authorization, your employer must provide a physical check or arrange an alternative payment method.
If you request a physical check for your final pay, your employer should accommodate this request when reasonable, though they may still use direct deposit if you previously authorized it.
What to do if direct deposit fails:
If your final paycheck direct deposit fails (because you closed the account, changed banks, or due to a bank error), contact your employer immediately. They must issue payment through another method promptly.
A failed direct deposit doesn’t restart the payment deadline. Your employer must still correct the issue quickly and cannot wait until the next pay cycle.
Example: Sandra’s last day at her Syracuse employer is Thursday. She’s normally paid via direct deposit every Friday. On Friday, the direct deposit hits her account for the correct amount, including her final wages and unused vacation. This complies with New York law.
Problem example: David quits his job and notifies payroll that he closed his direct deposit account. He requests a physical check. His employer says they “only do direct deposit” and won’t issue a check. This violates David’s right to timely payment. The employer must find an alternative way to pay David by the next regular payday—whether by paper check, cashier’s check, or another agreed method.
Your employer cannot use the direct deposit system as an excuse to delay your final wages beyond the required deadline.
Deductions From Final Paycheck
New York law strictly limits what employers can deduct from your wages, including your final paycheck. Your employer cannot simply withhold money because you’re leaving or because they claim you owe them something.
Legal deductions include:
Taxes and government-required withholdings: Federal income tax, Social Security, Medicare, state income tax, and any court-ordered garnishments must still be deducted from your final check.
Previously authorized deductions: If you signed written authorization for specific deductions—such as health insurance premiums, retirement plan contributions, or union dues—these can continue for your final pay period.
Deductions required by law: Wage executions, child support orders, and tax levies are still valid for your final paycheck.
Illegal deductions employers cannot take:
Unreturned equipment: Your employer cannot deduct the cost of uniforms, tools, laptops, phones, or other equipment you haven’t returned unless you specifically authorized this deduction in writing before receiving the equipment.
Training costs: Employers cannot deduct training expenses, certification costs, or onboarding expenses from your final check without prior written authorization.
Shortages or damages: Cash register shortages, broken equipment, or damaged inventory cannot be deducted from your final wages unless you authorized it in writing and the deduction doesn’t bring your pay below minimum wage.
“Catch-all” authorizations: Even if you signed a general agreement allowing deductions, New York courts have found that extremely broad authorizations may not be enforceable. The authorization should specify what types of deductions are allowed.
Severance agreements and offsets:
If you’re negotiating a severance package, your employer might try to offset any disputed amounts against severance pay rather than your final wages. This is different from deducting from your final paycheck.
Your final wages are earned compensation that cannot be withheld. Severance is additional money that may be negotiated and can include conditions.
Example: Teresa works at a retail store in Queens. When she quits, she hasn’t returned her store uniform yet. Her employer cannot deduct $75 from her final paycheck for the uniform unless Teresa signed a specific written authorization allowing this deduction before she received the uniform.
Example: Robert’s employer claims he owes $300 for a training course they paid for. Without a written agreement that Robert signed beforehand agreeing to repay training costs under specific circumstances, the employer cannot deduct this from his final wages.
If your employer makes unauthorized deductions from your final paycheck, you can file a wage claim with the New York Department of Labor to recover the withheld amount.
What If Your Employer Misses the Deadline?
When your employer fails to pay your final wages by the next regular payday, they violate New York Labor Law. You have several options to recover your unpaid wages and potentially receive additional damages.
Liquidated damages:
Under New York Labor Law Section 198, employees who don’t receive wages on time may be entitled to liquidated damages equal to 100% of the unpaid wages. This means if your employer owes you $2,000 in final wages and pays late, you may be able to recover $4,000 total.
Liquidated damages are designed to punish employers for wage violations and compensate you for the harm caused by late payment.
Interest on unpaid wages:
You may also be entitled to interest on unpaid wages from the date payment was due until the date you actually receive payment.
Attorney’s fees and costs:
If you hire an attorney to recover unpaid final wages, New York law allows you to recover your attorney’s fees and court costs from your employer if you win. This makes it possible to pursue claims even when the amount owed is relatively modest.
NYDOL enforcement:
The New York Department of Labor can investigate wage claims and order employers to pay unpaid wages. The NYDOL can assess penalties against employers who violate wage laws.
Filing a claim with the NYDOL is free and doesn’t require an attorney. The process is:
- File a complaint online or by mail with the NYDOL
- The Department investigates your claim
- If they find a violation, they can order payment and assess penalties
- The employer has the right to appeal the determination
Time limits:
You have six years from the date wages were due to file a claim for unpaid wages in New York. This is one of the longest statutes of limitations in the country.
However, it’s best to act quickly. Evidence becomes harder to gather over time, and you want to recover your money as soon as possible.
What to do immediately:
Document everything: Save pay stubs, timecards, your employee handbook, offer letters, and any communication about your final paycheck.
Send a written demand: Write to your employer (email is fine) stating that you haven’t received your final paycheck, the amount owed, and demanding payment immediately.
File a wage claim: If your employer doesn’t respond or refuses to pay, file a claim with the New York Department of Labor.
Consult an employment attorney: For significant amounts or complex situations, an attorney can help you understand your options and represent you.
Example: Marcus was fired from his job at a warehouse in Yonkers on May 1st. His next regular payday was May 10th, but his final paycheck never arrived. He emailed the HR department on May 11th asking about his final pay of $1,800. They didn’t respond. Marcus filed a wage claim with the NYDOL on May 20th. After investigation, the Department ordered the employer to pay Marcus $1,800 in wages plus $1,800 in liquidated damages, totaling $3,600.
Your final wages are not optional or negotiable. If your employer doesn’t pay on time, you have strong legal protections to recover what you’re owed.
Severance Pay vs Final Wages
It’s important to understand the difference between your final wages and severance pay. They’re governed by different rules and have different timelines.
Final wages are money your employer already owes you for work you performed. This includes:
- Your salary or hourly pay through your last day
- Earned overtime
- Accrued vacation (if your employer’s policy requires payout)
- Earned commissions and bonuses
- Expense reimbursements
Final wages must be paid by the next regular payday after your termination. They are not optional—you earned this money and your employer must pay it.
Severance pay is money your employer may choose to pay you as compensation for losing your job. Severance is:
- Not required by New York law (except in rare cases involving mass layoffs)
- Typically offered voluntarily by employers
- Often conditioned on signing a release of claims
- Paid on a different timeline than final wages
Key differences:
| Final Wages | Severance Pay |
|---|---|
| Already earned | Additional compensation |
| Required by law | Usually voluntary |
| Due next regular payday | Timeline negotiated |
| Cannot be withheld | May have conditions |
| Cannot require release | Often requires release |
Severance agreements:
If your employer offers severance, they will typically require you to sign a separation agreement. This agreement often includes:
- The amount and timing of severance payments
- A release of legal claims against the employer
- Confidentiality provisions
- Non-disparagement clauses
- Non-compete or non-solicitation agreements
Important: Your employer cannot condition your final wages on signing a severance agreement. Those are two separate things. Your final wages are owed regardless of whether you agree to severance terms.
When severance is required:
Severance is rarely required by law. Two exceptions:
WARN Act: The federal Worker Adjustment and Retraining Notification Act requires 60 days’ notice of mass layoffs or plant closures. If your employer violates the WARN Act, affected employees may be entitled to 60 days’ pay as damages.
Employment contracts: If you have an employment contract that guarantees severance, your employer must provide it according to the contract terms.
Negotiating severance:
If you’re offered severance, you can often negotiate better terms. Consider:
- The amount of severance pay
- How long payments continue
- Continuation of health insurance (COBRA)
- Whether you can file for unemployment while receiving severance
- References and how your departure will be characterized
- Which legal claims you’re releasing
You typically have at least 21 days to consider a severance agreement (45 days if the layoff involves multiple employees age 40 or older).
Example: Donna is laid off from her position in Albany. Her final paycheck of $3,500 (for her last two weeks of work) is due on the next regular payday. Her employer also offers her a severance package of four weeks’ pay ($7,000) if she signs a release of claims. Donna must receive her $3,500 final paycheck on the next regular payday regardless of whether she signs the severance agreement. The $7,000 severance will be paid according to the timeline in the severance agreement, which might be a lump sum or installment payments.
Never confuse your final wages with severance. Your final wages are non-negotiable and cannot be withheld while you consider a severance offer.
Vacation Accrual Policies in New York
New York employers are not required to provide paid vacation time. However, once an employer chooses to offer vacation as a benefit, they must follow their policy consistently and honor the terms they’ve established.
How vacation accrues:
Employers can structure vacation accrual in different ways:
Accrual method: Employees earn vacation time gradually throughout the year. For example, you might accrue 0.83 days per month (10 days annually), and you earn this time as you work each month.
Lump sum frontloading: Employers provide the full year’s vacation allotment at the beginning of the year or on your anniversary date. You can use these days immediately, but there may be clawback provisions if you leave before working the full year.
Hybrid approaches: Some employers provide a portion upfront and accrue the rest throughout the year.
Accrual caps:
New York employers can implement caps on vacation accrual, meaning once you reach a certain number of accrued days, you stop earning more until you use some time.
For example, a policy might state: “Employees accrue vacation at 10 days per year, with a maximum accrual of 15 days. Once you reach 15 days, you will not accrue additional time until your balance drops below 15 days.”
Accrual caps must be clearly communicated in writing and applied consistently.
Waiting periods:
Employers can require new employees to wait a certain period before using vacation time—commonly 90 days or six months. However, during this waiting period, you’re typically still accruing vacation time that you can use once the waiting period ends.
Blackout dates:
Employers can designate certain times when vacation cannot be taken due to business needs (such as the holiday shopping season for retail). These restrictions must be reasonable and communicated in advance.
Partial year calculations:
If you leave employment partway through the year, your vacation accrual depends on your employer’s method:
Accrual method: You’re only entitled to the vacation you’ve actually accrued up to your departure date, not the full year’s allotment.
Frontloaded method: If you received the full year’s vacation upfront but leave partway through the year, your employer may be able to deduct the “unearned” portion from your final paycheck if your employment agreement clearly allows this.
Example: Sharon’s employer provides 15 vacation days per year, accrued at 1.25 days per month. Sharon works from January through June (6 months) and then resigns. She has accrued 7.5 days of vacation. If she used 5 days earlier in the year, she should receive payment for 2.5 unused days in her final check (assuming the policy requires payout).
Example: Tom’s employer frontloads 12 vacation days on January 1st each year. Tom uses 8 days and then resigns in July. He’s worked 7 months (58% of the year), so he earned 7 days (12 × 0.58). Since he used 8 days, the employer’s policy states they can deduct 1 day’s pay from his final check for the “unearned” vacation. This is only legal if Tom signed a clear written agreement allowing this deduction.
Understanding your employer’s vacation policy is essential to knowing what you’re entitled to when you leave. Request a copy of the written policy and calculate your accrued time before your last day.
Commissioned Employees: Earned Commissions
Sales employees, real estate agents, and other commissioned workers face unique issues when employment ends. Understanding when commissions are “earned” and must be paid is crucial.
When are commissions earned?
This depends on your commission agreement or company policy. Common standards include:
At time of sale: Commission is earned when the customer signs the contract or completes the purchase, regardless of when the company receives payment.
Upon payment: Commission is earned only when the customer actually pays, not when the sale is made.
At delivery or completion: Commission is earned when the product is delivered or the service is completed.
Multi-step processes: Some commission plans require multiple milestones (sale closes, payment received, customer doesn’t cancel within 30 days, etc.).
Your commission agreement should specify when commissions are considered earned. This is usually found in your offer letter, employment contract, commission plan document, or employee handbook.
Commissions in your final paycheck:
Any commissions you earned according to your commission agreement before your last day must be paid in your final paycheck or by the next regular payday.
Your employer cannot forfeit commissions you already earned just because you’re leaving. Once earned under the terms of the agreement, commissions become wages owed to you.
Post-termination commissions:
The more complex question is what happens to commissions on sales you initiated but that close after you leave, or recurring commissions that continue after your departure.
This depends entirely on what your commission agreement says:
“Actively employed” requirements: Many commission plans state you must be actively employed when the commission is earned or paid. If your plan has this language, you may not be entitled to commissions that finalize after your last day.
No such requirement: If your agreement doesn’t require active employment, you may be entitled to commissions on sales you originated even if they close after you leave.
Courts look at the specific language of your agreement. Ambiguities are typically resolved in favor of the employee.
Written commission agreements:
New York strongly encourages written commission agreements. While oral agreements can be enforceable, they’re much harder to prove.
If you have a commission-based role, request a written commission plan that specifies:
- How commission is calculated
- When commissions are considered earned
- When commissions are paid
- What happens to pending commissions if employment ends
- Whether you must be actively employed to receive payment
Chargebacks and clawbacks:
Some commission plans include provisions where commission can be charged back if a customer cancels, returns the product, or doesn’t pay. These provisions are generally legal if clearly stated in writing beforehand.
However, chargeback provisions cannot reduce your pay below minimum wage for the hours worked in any pay period.
Example: Kevin is a car salesperson in Long Island earning commission on vehicles sold. His commission agreement states he earns commission “when the sale is finalized and the customer takes delivery.” Kevin gives his two weeks’ notice on October 1st. During his notice period, three customers take delivery of cars he sold, earning him $4,500 in commission. His employer must pay this commission in his final paycheck because the sales were finalized before his last day according to the agreement’s terms.
Example: Lisa works in software sales. Her commission agreement states she earns commission “when the customer’s first payment is received.” Lisa resigns on March 15th. A major sale she worked on for months closes on March 30th, and the customer’s first payment arrives in April. Because Lisa was not employed when the payment was received (the earning event under her agreement), and her agreement requires active employment, she may not be entitled to this commission—even though she did all the work. However, if her agreement doesn’t specifically require active employment at the time of payment, she may have a claim for this commission.
If you’re leaving a commissioned sales role, carefully review your commission agreement before your last day and calculate what should be owed. Consider whether it’s worth negotiating your departure date to ensure pending commissions are earned before you leave.
Claiming Your Final Paycheck
If your employer hasn’t paid your final paycheck on time or has shorted you on the amount owed, take these steps to recover your wages.
Step 1: Verify what you’re owed
Calculate exactly what should be in your final paycheck:
- Hours worked in your final pay period (including overtime)
- Unused vacation days (if policy requires payout) multiplied by your daily rate
- Earned commissions according to your agreement
- Any earned bonuses
- Expense reimbursements pending
Gather documentation: pay stubs, timecards, your offer letter, employee handbook, commission agreements, and any written policies about vacation payout.
Step 2: Contact your employer
Reach out to your HR department or payroll office first. Sometimes final paycheck issues are honest mistakes or processing errors.
Send a written communication (email is fine) stating:
- Your last day of employment
- That you haven’t received your final paycheck (or received less than owed)
- Exactly how much you believe is owed and what it includes
- A request for immediate payment
- The legal deadline (next regular payday) if it hasn’t passed yet
Keep this communication professional and factual. Save copies of all correspondence.
Step 3: Send a formal demand letter
If your employer doesn’t respond within a few days, send a formal demand letter. This can be via email or certified mail.
Your demand letter should include:
- Statement of the facts (your employment dates, termination date, payment deadline)
- The specific amount owed and how you calculated it
- Reference to New York Labor Law requiring timely payment
- A deadline for payment (typically 7-10 days)
- Statement that you will file a wage claim or take legal action if not paid
Step 4: File a complaint with the New York Department of Labor
If your employer still doesn’t pay, file a wage claim with the NYDOL:
- File online at: labor.ny.gov
- Or call: 888-469-7365
- Or mail a written complaint to your regional office
You’ll need to provide:
- Your personal information and employment details
- Your employer’s information
- Description of the unpaid wages
- Any documentation you have
The NYDOL will investigate and can order your employer to pay if they find a violation.
Step 5: Consult an employment attorney
For larger amounts or complex situations, contact an employment lawyer who handles wage claims. Many offer free consultations.
An attorney can:
- File a lawsuit to recover your unpaid wages
- Seek liquidated damages (up to 100% of unpaid wages)
- Recover attorney’s fees and costs if you win
- Handle negotiations with your employer
You have six years from the date wages were due to file a lawsuit for unpaid wages in New York.
What not to do:
Don’t wait indefinitely: The longer you wait, the harder it becomes to recover your wages. Act within weeks, not months.
Don’t let your employer string you along: If they keep promising “next week” but don’t pay, move forward with a formal claim.
Don’t accept less than you’re owed without understanding your rights: Your employer may offer a partial payment to “settle.” Consult an attorney before accepting less than the full amount owed.
Example: After being fired from his job in Rochester, Jake doesn’t receive his final paycheck on the next regular payday. He emails HR on day one after the missed deadline and follows up three days later with no response. On day 7, he sends a formal demand letter via email and certified mail, giving them 10 days to pay $3,200 in final wages. When 10 days pass with no payment, Jake files a complaint with the NYDOL and consults an employment attorney. His attorney sends a letter demanding payment plus liquidated damages. The employer finally pays $3,200 in wages plus $3,200 in liquidated damages to avoid a lawsuit.
You worked for your final wages, and you’re legally entitled to receive them on time. Don’t be afraid to assert your rights if your employer violates New York final paycheck laws.
Disclaimer
This article provides general information about New York final paycheck laws and should not be considered legal advice. Employment law can be complex, and specific situations may involve additional factors not covered here. If you believe your employer has violated your rights regarding final wages, consider consulting with a qualified New York employment attorney who can evaluate your specific circumstances and advise you on the best course of action. Laws and regulations may change, so verify current requirements with the New York Department of Labor or a legal professional.