Employment Law/Hourly Payroll Policies
I've worked at my current company for almost two years and because of the lack of work and engagement, I decided to reduce my hours from 40 to 25 hours per week. When I was full time, I was paid currently with no lag. Now that I've become part time, my employer is now paying me on a lag.
Unfortunately, I was not informed of this policy before I went to part time. I was supposed to receive a direct deposit paycheck on October 31st but did not. I immediately went to HR to ask why and both the HR person and my manage were unaware that part time employees are paid on a lag. Because of this change, accounting was not planning to pay me until November 15th for dates from 10/16 through 11/3. Thankfully, they understand that this would be a hardship for me to wait a month to receive my paycheck so in order to resolve this issue, they are paying me half of what they would have paid me, and the other half they will pay me on 11/15.
Although I'm thankful to soon be paid something, I'm still irritated that I now have a lag in pay. Before I was a full time hourly employee being paid current. Is that legal? If so, why can't I still be paid current? Why does my part time status change when they pay me?
Also, is it legal to be paid on the 15th and the end of the month or have the laws recently changed? I heard that the law now states that hourly employees must be paid every two weeks.
Please feel free to contact me for additional information. I live in the state of Minnesota in case that matters regarding payroll laws.
According to Illinois wage and hour laws, you must be paid no less than twice per month (which is different than every two weeks considering that every month is not exactly 4 weeks long). Employers may also have different wage patterns for specific categories of employee (such as part-time versus full-time) but these wage practices must be carried out equitably across the organization.
Shannon M. Reising, MSP, PHR