Expert: Shirley McAllister, CPP, PHR - 3/31/2009

Question
We have 44 employees.  Half are paid bi-weekly (hourly) and the other half are paid semi-monthly (salaried).  We are considering coverting everyone to bi-weekly effective 1/1/10.  The last semi-monthly payroll of 2009 is on a Thursday and is the 4th day of the bi-weekly payroll week.  On the 1st payroll of 2010, can the salaried employees be paid for only 6 days since they were already paid for 4 days?

Answer
This can be done. This is what you need to do. Give them notice that this will be changing so they can have time to plan for a shorter payperiod. Call a staff meeting or however to get the word out to them.

You might even want to consider paying them one day less on 4 pay periods to catch them up to the new pay cycle instead of paying 4 days less all on one paydate. This would mean that for 4 payperiods their paydate would move one day so that at the end they would be on the same pay period as the bi weekly.

You could also do it in two payperiods and pay two days less on each of the two pay periods instead of 4 days all on one pay period.

Write up a policy change from Semi-Monthly to bi-weekly, date it, give a copy to each employee and have them sign on a sheet of paper that they have received a copy of the new policy and understand it.

Put a copy of the new policy on pay periods in the company handbook.

Now you have done your due dilligence and you can change the pay periods.

Shirley