Florida’s “Final Paycheck” Trap: What Employers Forget

Why late or partial paychecks can still expose employers to real liability

Florida doesn’t have a statute requiring the immediate payment of final wages upon employment termination. That absence often leads employers to think they’re safe if they delay a final paycheck or pay only part of it while sorting out disputed issues, such as PTO, overpayments, or unreturned property. That thinking is wrong. And in many cases, it is costly.

Even without a Florida statute setting a hard deadline, delaying or reducing a final paycheck can trigger federal wage violations, breach of contract claims, or even retaliation allegations, especially when the employer has withheld money tied to PTO or unpaid expense reimbursements.

The problem usually isn’t timing. It’s what’s being withheld and why.

It’s lawful in Florida to pay final wages on the next regularly scheduled payday. But when an employer withholds a portion of the final check, either to “offset” a disputed expense or to punish the employee for misconduct, they’ve crossed into legally risky territory.

Three common scenarios trigger legal exposure:

1. Earned but unused PTO: If the employer’s written policy or established practice says it will be paid out, failure to do so can support a breach of contract claim.

2. Reimbursable expenses: Under federal law, if the employee’s out-of-pocket costs (such as mileage, tools, or job-related supplies) reduce the effective pay rate below minimum wage, that’s an FLSA violation.

3. Withholding for unreturned property or damaged equipment: These deductions are not automatically lawful in Florida. They require clear, prior written authorization and cannot reduce the worker’s pay below minimum wage. Even then, courts scrutinize them closely.

Delays and deductions can fuel bigger disputes

Most final paycheck problems don’t happen in isolation. They occur when there’s already friction, maybe the termination was abrupt, or the employee is threatening a legal claim. Leaving pay unresolved gives the former employee leverage and creates the appearance of retaliation or disorganization. That’s true even when the amount at issue is relatively small. And some cases, the employer’s own deductions violate the FLSA or breach a written PTO policy, creating an entirely new claim that didn’t exist before.

Florida courts have enforced written PTO and commission agreements as binding in at-will employment. If the employee can show the amount that was earned and contractually owed, they may be entitled to full payment, plus liquidated damages, interest, attorney’s fees, and costs.

What Florida employers should do

Avoid making final pay decisions in the heat of a dispute. Make sure HR and management understand:

• If your policy promises PTO payout, you must pay it. Ambiguities will be read against the employer.

• Expense reimbursements must be paid promptly. If the deduction causes pay to drop below minimum wage, that’s a clear FLSA violation.

• You can’t deduct for lost tools or unreturned laptops unless the employee has signed a valid wage deduction authorization, and even then, only if it doesn’t violate minimum wage rules.

• If you’re unsure, pay the final wages now and resolve the dispute separately. Trying to claw back money through paycheck reductions is rarely worth the legal risk.

Final pay isn’t just a housekeeping matter. If mishandled, it can open the door to claims under federal wage law, contract law, or retaliation statutes.