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Employment Law/Payroll in Arrears

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Question
We have a bi-weekly payroll and my company is considering payroll in arrears. For example - for the two week period ended on Sunday 4/26/15, we would be paid 5 days later on 5/1/2015. In arrears means that we would wait for 10 days and be paid on 5/8/2015 instead.  
We are trying to find industry standards on this practice and besides state requirements, find out if it is legal to pay this way and how other companies who do it are justifying it.  
Any help you can give me would be much appreciated.
Thank you.

Answer
This is done in many companies. Holding back a week is standard policy. The week that is held back will be paid at the end of your employment with the company.  It will only be one time, than you will be paid biweekly, cut off one week and pay the next week.

This is legal to do.

Shirley

Employment Law

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Shirley McAllister, CPP, PHR

Expertise

I can answer questions about payroll laws and payroll tax laws and Human Resource laws and agencies. I can answer federal payroll and human resource law questions and most states; I do not have a knowledge of the local taxes for cities and counties within the state. If and when I can I will try and send you the website where you can reference the answer and where you can obtain more information as well as a contact number if needed for that particular agency. Some agencies I have worked with are IRS, Department of Labor (federal and state), Revenue Canada (and provincial governments), Inland Revenue, OSHA (0ccupational Safety and Health Administration); Social Security Administration and National Child Support as well as other agencies in Payroll and Human Resources. Some Laws I am particularly familiar with are FLSA (Fair Labor Standards Act), ADA (Americans With Disabilities Act), FMLA (Family Medical Leave Act) COBRA (Consolidated Omnibus Reconciliation Act ) , QDRO's, QMCSO's, and other support orders and garnishments, USERRA (Uniformed Services Employment and Remployment Rights Act,PPA Act (Pension Protection Act of 2006, As well as most other employment type acts. I am also well versed in the Title V Civil Rights Act and the HIPAA (Health Insurance Portability and Accountability Act).

Experience

30 years in Payroll and Human Resources

Organizations
SHRM (Society of Human Resources) APA (American Payroll Association) DOLEA (Department of Labor Employers Association) CPA (Canadian Payroll Association) NAPW (National Association of Professional Women) The Mentoring Network

Education/Credentials
PHR Certification in Human Resources CPP Certification in Payroll in U.S. Payroll Administrator and Payroll Supervisor certification in Canada

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