Maryland final paycheck and accrued leave at termination

“(a) Except as provided in subsection (b) of this section, each employer shall pay an employee or the authorized representative of an employee all wages due for work that the employee performed before the termination of employment, on or before the day on which the employee would have been paid the wages if the employment had not been terminated.”

Maryland final pay date

What it means for Maryland employers

Maryland does not create a special termination deadline. It freezes the ordinary schedule: whatever payday was going to cover the last days worked is the latest date for the final wages. Under LE 3-502, that schedule pays most employees at least every two weeks or twice a month, while administrative, executive and professional employees may be paid less often. (Md. Code, Labor and Employment 3-502)

What counts as wages is broad. The Maryland Department of Labor's guide lists bonuses, commissions, fringe benefits such as accrued vacation, overtime and other promised remuneration. (Md. Code, Labor and Employment § 3-505(a))

Accrued leave is the part that depends on paperwork. Under LE 3-505(b), an employer can decline to pay accrued leave at termination only when three conditions all hold: it has a written policy limiting payout, it told the employee about its leave benefits at hiring as LE 3-504(a)(1) requires, and the policy's terms do not entitle this employee to payment. Without such a written policy, the Department says the departing worker is owed the cash value of unused earned vacation that was otherwise usable. (Md. Code, Labor and Employment 3-505)

Sick leave is treated differently. The Department's termination pay guide says sick leave is a contingency against illness and cannot be claimed at termination the way vacation can, unless a contract or employer policy expressly allows it. (Maryland Department of Labor, Termination Pay)

Notice periods are not paid time by default. The guide says that, unless a contract, agreement or policy provides otherwise, an employer does not have to let an employee work out a two week (or other) notice period, nor pay for days the employee was not allowed to work. (Md. Code, Labor and Employment § 3-505(a))

The Department's Employment Standards Service accepts claims for fringe benefits not paid at a quit, discharge or layoff, and for paychecks not received within two weeks after the scheduled pay date. (Md. Code, Labor and Employment § 3-505(a))

Penalties and liability

LE 3-507.2 lets an employee sue once two weeks have passed after the date wages were required to be paid under 3-502 or 3-505. If the court finds the wages were withheld without a bona fide dispute, it may award up to three times the wage, plus reasonable counsel fees and other costs. (Md. Code, Labor and Employment 3-505)

On $2,500 of final wages held back without a bona fide dispute, that is a possible award of up to $7,500, before fees and costs. (Md. Code, Labor and Employment § 3-505(a))

Exceptions and special cases

• Accrued leave need not be paid when the written policy, the notice at hiring and the policy terms together exclude it (LE 3-505(b)). (Md. Code, Labor and Employment 3-505)
• Administrative, executive and professional employees can be on a less frequent payroll, which moves their final payday accordingly (LE 3-502(a)(2)). (Md. Code, Labor and Employment 3-502)

Worked examples

Discharged on Friday, October 2, 2026 (biweekly payroll)

The pay period ending Saturday, October 3 is paid on Friday, October 9, 2026. The final wages, plus unused vacation if no qualifying written policy limits it, are due by October 9. If still unpaid two weeks later, on Friday, October 23, the employee may file suit under LE 3-507.2. (Md. Code, Labor and Employment 3-507.2)

Resignation with two weeks of notice given Monday, November 2, 2026

The employer tells the employee to leave the same day. Unless a contract or policy says otherwise, the remaining notice days are not owed; the wages earned through November 2 are paid on the payday that would have covered them. (Md. Code, Labor and Employment § 3-505(a))

Written forfeiture policy

The handbook, given at hiring, says unused vacation is forfeited on termination. An employee leaving with 40 accrued hours is not owed payment for them under LE 3-505(b). (Md. Code, Labor and Employment 3-505)

How to act on it

Final paycheck: Maryland and neighboring states

Each state links to its rulebook. Only rules we verified are shown.

Questions about Maryland final paycheck rules

The verified rules behind this page (3)

• When employment ends, the employer must pay all wages due for work performed before termination on or before the day the employee would have been paid had the employment not ended. (Md. Code, Labor and Employment § 3-505(a); verified Sep 24, 2026)
• Accrued vacation must be paid at termination unless the employer has a written policy limiting payout of accrued leave, notified the employee of its leave benefits at hiring, and the employee is not entitled to payment under that written policy. (Md. Code, Lab. & Empl. § 3-505(b); verified Sep 24, 2026)
• Employers must set regular pay periods and pay each employee at least once every 2 weeks or twice each month (bi-weekly or semi-monthly); administrative, executive or professional employees may be paid less frequently. (Maryland payday law (DOL WHD State Payday Requirements table); verified Sep 27, 2026)

Sources (7)

• Md. Code, Labor and Employment 3-505
• Md. Code, Labor and Employment 3-502
• Md. Code, Labor and Employment 3-507.2
• Maryland Department of Labor, Termination Pay
• Maryland Department of Labor, What is a wage
• Maryland Department of Labor, Having problems with your pay
• Maryland payday law (DOL WHD State Payday Requirements table)

Checked Sep 27, 2026 · How we verify every rule · Report an error

Where this goes next

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