Resignation laws are a crucial part of employment law in the US. In September 2024, the US Bureau of Labor Statistics reported that around 3.1 million people quit their jobs.
For employers, understanding these laws is vital to ensure compliance, protect their reputation, and manage transitions effectively.
This Article Covers
- Key Resignation Laws in the US
- The Resignation Process in the US (Notices, Resignation Letters, Final Pay and, Exit Duration)
- Accepting and Withdrawing Resignations in the US
- Severance Pay for US employees
- Noncompetes Rule for US employees
Key Resignation Laws in the US
Several regulations may apply when dealing with resignations in the US, which can vary by state and employer policies. These are:
- At-Will Employment – All US states, except Montana, allow “at-will” employment. This allows employers or employees to terminate employment at any time, provided that it is not done for illegal reasons such as discrimination or retaliation.
- Resignation Notice Period – There is no federal law that sets a mandatory resignation notice period for employees. This period often depends on state laws or what is agreed upon in the employment contract.
- Final Pay – Final paychecks are the last paycheck an employee receives after separating from the employer. They are also referred to as the last paycheck.
- Unused PTO – After quitting, workers may be entitled to receive unused PTO payouts. However, this is not mandated by federal law.
- Forced Resignation – Forced resignations can happen if an employer creates a hostile work environment or pressures the employee to quit. This situation is referred to as constructive discharge, which can be deemed illegal if it occurs due to discrimination or retaliation.
The Resignation Process in the US (Notices, Resignation Letters, Final Pay and, Exit Duration)
In the US, all resignations must be submitted in writing. If an employee resigns orally, written confirmation should be obtained.
If that is not possible, the recipient of the oral resignation must document it in a note for the record.
What should a resignation letter in the US contain?
Resignation letters in the US should generally contain a specific reason for the resignation and a forwarding address.
The reason for resignation may influence future re-employment decisions and will be used to determine possible unemployment benefits.
Employees should summarize the reason if space is limited. The forwarding address will be used to send important documents for any pay or compensation owed to the employee.
A well-written resignation letter should also include the effective date of separation, the employee’s signature, and the date of signature. However, this is not a mandatory format.
How much notice should US employees serve after resigning?
Employees in the US aren’t required by federal law to give a resignation notice but this condition can be stipulated in their employment contract.
Notice durations may vary depending on company policy, but typically, most companies expect employees to give at least two weeks’ notice before resigning.
How do you offboard US employees who resigned?
US employee offboarding, or exit management, is just as important as onboarding in the US. It ensures a smooth and professional transition that protects the company and the departing employee.
The offboarding process should be conducted regardless of whether the employee’s departure is voluntary or involuntary.
The offboarding process for US employees is not governed by specific laws. Best practices include but are not limited to, developing a knowledge transfer plan, arranging the return of company assets, conducting an exit interview, notifying clients, and terminating the employee access.
What should US employers ask in an exit interview?
Exit interviews are a great opportunity to gather honest feedback from departing employees. They can offer valuable insights into areas where your company is succeeding and where it might need improvement.
Sample exit interview questions you can ask include:
- How was your relationship with your manager and coworkers?
- What are some areas we can improve on?
- Is there someone here you particularly admire?
- How can we enhance our operations?
When should the final paycheck be issued to US employees?
There is no federal law that requires employers to give former employees their final paychecks immediately. However, some states may require immediate payment.
Employers are required to pay final paychecks by the next regular payday. If they fail to do so, employees can contact the Department of Labor’s Wage and Hour Division or their state labor department.
Final paycheck laws by state
| US State | Final Paycheck Issuance | |
| 1 | Alabama | Next payday |
| 2 | Alaska | Next payday that’s at least three working days after the US employee’s last day |
| 3 | Arizona | Next payday (wages shall be paid by mail when requested by US employee) |
| 4 | Arkansas | Next payday |
| 5 | California | To be paid immediately if the US employee gives at least 72 hours prior notice; 72 hours after quitting if the employee gives no notice |
| 6 | Colorado | Next payday |
| 7 | Connecticut | Next payday |
| 8 | D.C. | Next payday or within 7 days of the resignation date, whichever is earlier |
| 9 | Delaware | Next payday |
| 10 | Florida | Next payday |
| 11 | Georgia | Next payday |
| 12 | Hawaii | Next payday, At the time of quitting if the US employee gave at least a pay period’s notice of intention to quit |
| 13 | Idaho | Next payday or ten business days, whichever is earlier. If a US employee requests earlier payment in writing, they must be paid within 48 hours, excluding weekends and holidays |
| 14 | Illinois | Immediately if possible; otherwise, by the next payday |
| 15 | Indiana | Next payday |
| 16 | Iowa | Next payday |
| 17 | Kansas | Next payday |
| 18 | Kentucky | Next payday or within 14 days, whichever is later |
| 19 | Louisiana | Next payday or 15 days after the discharge, whichever is earlier |
| 20 | Maine | Next payday |
| 21 | Maryland | Next payday |
| 22 | Massachusetts | Next payday, or by the following Saturday, if there is no payday set |
| 23 | Michigan | Next payday |
| 24 | Minnesota | Next payday, or within 20 days if the next payday is within five days of the last workday |
| 25 | Mississippi | Next payday |
| 26 | Missouri | To be paid Immediately |
| 27 | Montana | Next payday or within 15 days, whichever is earlier |
| 28 | Nebraska | Next payday or within two weeks, whichever is earlier |
| 29 | Nevada | Next payday or within seven days, whichever is earlier |
| 30 | New Hampshire | Next payday, or within 72 hours if the US employee gives one pay period’s notice |
| 31 | New Jersey | Next payday or within ten days of the pay period’s end, whichever comes first |
| 32 | New Mexico | Next payday |
| 33 | New York | Next payday |
| 34 | North Carolina | Next payday |
| 35 | North Dakota | Next payday |
| 36 | Ohio | Next payday or within 15 days, whichever is earlier |
| 37 | Oklahoma | Next payday |
| 38 | Oregon | Last workday if a US employee gives at least 48 hours notice, or next business day if the last workday falls on a weekend or a holiday. Within five business days or on the regular payday (whichever comes first) if a US employee gives less than 48 hours’ notice |
| 39 | Pennsylvania | Next payday |
| 40 | Rhode Island | Next payday |
| 41 | South Carolina | Within 48 hours or next payday, not to exceed 30 days |
| 42 | South Dakota | Next payday |
| 43 | Tennessee | Next payday or within 21 days, whichever is later |
| 44 | Texas | Next payday |
| 45 | Utah | Next payday |
| 46 | Vermont | Next payday, if there is no regular payday, then on the next Friday |
| 47 | Virginia | Next payday |
| 48 | Washington | Next payday |
| 49 | West Virginia | Next payday |
| 50 | Wisconsin | Next payday |
| 51 | Wyoming | Next payday |
Accepting and Withdrawing Resignations in the US
There are no federal guidelines for accepting resignations in the US.
However, employers must record the effective date of separation and reasons for the resignation in the employee’s official records.
Can employees withdraw resignations in the US?
Employees in the US can withdraw their resignation before the effective date of separation.
However, the employer can decline the withdrawal request if there is a valid reason, such as administrative disruption or the hiring or commitment to hire a replacement.
Employers must explain these reasons to the employee. Avoiding disciplinary actions is not a valid reason.
Can employers reject resignations in the US?
US employees have the right to resign at any given time. Hence employers must accept the resignations put in by the employees.
Severance Pay for US employees
The Fair Labor Standards Act (FLSA) does not mandate severance pay; rather, it is determined through an agreement between the employer and the employee (or their representative).
Severance pay can generally be provided to US employees when the employer terminates their employment. It is often calculated based on the employee’s tenure.
Noncompetes Rule for US employees
Non-compete agreements for US employees have recently been banned by the Federal Trade Commission (FTC) to foster competition, innovation, and the growth of new businesses.
This ban also applies to existing employees currently bound by such agreements, effectively nullifying them.
Important Cautionary Note
When making this guide we have tried to make it accurate but we do not give any guarantee that the information provided is correct or up-to-date. We therefore strongly advise you to seek advice from qualified professionals before acting on any information provided in this guide. We do not accept any liability for any damages or risks incurred for the use of this guide.
