Expert: Shirley McAllister, CPP, PHR - 3/25/2011

Question
QUESTION: hello
the company i work for wants to change payroll period to lag behind one week, so payroll can have time to process.  This would mean employees would miss out on a week's pay and would not receive that week's pay until they leave company and get last paycheck-is this correct?  Or, is there a way to accomplish this change without employees losing a weeks worth of pay??
Thank you

ANSWER: The week held back is paid to the employee upon termination from the company. The company could allow employees to sell a week of vacation if they wished to cover that week, but they are not required to do so. This is a normal transition between pay period schedules and it is legal for this to be done.

Shirley

---------- FOLLOW-UP ----------

QUESTION: Could the employer change the pay period to a week behind and still give the full pay.  Then, when they leave nothing would be owed to employee.
Thanks so much for your answers
jill

Answer
No it doesn't work this way. The pay must be paid on a weekly, bi weekly, semi monthly schedules. The time is paid as it is worked. If a week is held back only a week is paid. The hours are paid according to the schedules sent in. If one week is held back that means that only one week is paid.

Shirley