A final paycheck is the last wage payment owed after employment ends.
Why a final paycheck matters
A final paycheck matters because employment ending does not erase wage obligations. Timing, deductions, commissions, accrued paid time, expense reimbursements, and separation payments can become legal issues.
Final-paycheck rules vary significantly by state and by the type of wages involved.
Where a final paycheck appears
Final-paycheck issues appear after termination, resignation, layoffs, wage claims, severance negotiations, commission disputes, payroll audits, and wage-theft allegations.
Practical example
An employee resigns after earning unpaid overtime and a final commission. The final paycheck may need to account for both ordinary wages and other earned compensation under applicable rules.
How a final paycheck differs from nearby terms
A final paycheck differs from severance because severance is usually additional separation compensation, while a final paycheck covers wages already earned. It differs from wage theft because wage theft is a broader claim that wages were unlawfully withheld.
Related terms
Quick knowledge check
Why is severance not the same thing as a final paycheck?