At-will employment doctrine
New York follows the at-will employment doctrine. Absent a constitutional violation, statutory prohibition, or express contractual limitation, an employer may terminate an employee at any time and for any reason—or no reason at all—without prior notice. Employees likewise may resign at any time without giving a reason. However, an employer cannot fire an employee for an illegal reason, including discrimination based on protected characteristics or retaliation for whistleblowing or other protected activities.
Source: Murphy v. American Home Products Corp., 58 N.Y.2d 293, 448 N.E.2d 86 (1983) | NY Attorney General — Job Termination
Final paycheck timing — regular payday rule
New York Labor Law § 191(3) requires employers to pay all wages earned through the date of termination no later than the regular payday for the pay period during which the termination occurred. This timing rule applies uniformly regardless of whether the employment ended through employer-initiated termination, layoff, or voluntary resignation by the employee.
The "regular payday" is determined by the employee's classification under § 191(1). Manual workers must ordinarily be paid weekly (not later than seven calendar days after the end of the workweek); clerical and other workers must be paid at least semi-monthly on regular paydays designated in advance by the employer; railroad workers on or before Thursday of each week for wages earned through the prior Tuesday; and commission salespersons in accordance with agreed terms but not less frequently than once per month. The final-paycheck obligation under § 191(3) incorporates these classification-specific regular paydays. An employer who pays clerical employees bi-weekly on Fridays, for example, must pay a departing clerical employee's final wages on the next scheduled Friday following termination, even if termination occurred early in that pay period.
Employee's right to request mailing. Section 191(3) provides that "[i]f requested by the employee, such wages shall be paid by mail." The statute does not impose any formality requirement for the request; an employee may request mailing orally or in writing. Employers must ensure that a mailed final check is sent in time for the employee to receive it by the statutory deadline—the regular payday itself. Courts construe the timing requirement strictly; a check mailed on the regular payday that arrives later does not satisfy § 191(3) if the employee requested mailing and the check could not reasonably have arrived by the payday.
Wages subject to final-paycheck timing. The § 191(3) obligation extends to "wages," which under New York law encompasses regular hourly or salary pay, accrued overtime, earned commissions (governed by the commission agreement and § 191(1)(c) timing rules), and earned bonuses. The statute does not itself mandate payout of unused vacation, paid time off, or sick leave; treatment of accrued leave on termination is governed by the employer's written policy or an applicable collective bargaining agreement. However, once an employer's policy or agreement treats unused leave as "wages earned," the amounts become subject to § 191(3)'s regular-payday timing requirement.
Practical interaction with pay-frequency rules. Employers with manual workers face a tighter final-paycheck window than those employing only clerical staff. A manual worker terminated mid-week must receive final wages by the following week's regular payday (typically within 7–10 days of termination). A clerical employee terminated mid-period in a bi-weekly cycle may not receive final wages for up to two weeks after termination—but no longer. Employers processing multi-state terminations should note that New York's "regular payday" standard is more employee-favorable than states permitting longer final-pay delays.
Employers who fail to pay final wages by the § 191(3) deadline face civil penalties under § 197 (up to $500 per violation), potential liquidated damages equal to 100% of unpaid wages under § 198(1-a), and the employee's litigation costs and attorneys' fees under § 198(1-a) and (4). The New York State Department of Labor enforces § 191 through its Division of Labor Standards and may issue orders to pay, assess penalties, and pursue criminal misdemeanor charges under § 198(2) for willful violations.
Source: N.Y. Lab. Law § 191