Expert: Shirley McAllister, CPP, PHR - 10/28/2009

Question
What does this mean?  "Anyone turning in late time sheets will have their paychecks held until we are legally bound to release them." Is this legal?

Answer
Some states give the employer's a time period in which pay checks must be paid. Usually it is every payday. Some states however say at least twice a month or at least once a month. If the company wishes it can hold them until the time limit when they are required to pay them by state law.

Also the company is only required to pay minimum wage, so some companies have started paying minimum wage for all time not in to payroll by the time it needs to be for payroll processing. Than they will make the difference up later. This is legal because the law only says that the company must pay at least minimum wage.

I don't know the circumstances, but payroll has a timetable expecially if they have direct deposit. I must have my payroll sent in by Wednesday at 10:30 am or my wages to my employees are not in the bank on Friday which is payday.  Also if the company outsources the payroll the agency printing the checks must have the information in time to process the checks and that may be anywhere from a few days to a week before hand. If they do not have that information than payroll cannot be processed on time. They cannot hold back everyone's payroll because 1 timecard is late, nor would they be expected to do so.

Yes, they could pay fines and penalties for holding back a few checks on employees that have not turned in timesheets, but they could pay larger fines and penalies for not paying all the employees on time. Now they have to figure out which would be the smallest penalty.

I understand sometimes it is difficult to turn it in on time, but it is impossible to pay time without it and if I am doing payroll and I do not have a timesheet I will hold out that employee and deal with it later so everyone else can be paid on time. It is much easier to deal with a few employees than all the employees.

Just try and look at the other side of the coin and do the best you can to turn it in on time, because those people processing are simply doing a job just like you and they have a deadline to make with payroll and if they do not make the deadline it is their jobs on the line.

I hope I have explained the process, and I hope that you receive your check soon.

Shirley