State payday laws determine the frequency that employers must pay employees, but not all states are obligated to comply. For instance, in South Carolina and Alabama, businesses with more than five workers only need to provide written notice to employees regarding when to expect pay periods. Many state laws dictating paydays have exclusions for specific types of companies and workers. Also, workers who are classified correctly as independent contractors are not included; their payment terms are spelled out typically in a written contract.
1. Question: What is the wage payment and collection act?
The Wage Payment and Collection Act is the legislation governing the payment of salaries to workers and the deductions that employers can take from employees’ paychecks.
2. Question: How often must employers pay wages?
While laws governing the regularity and frequency of paychecks vary among states, most operate in a comparable fashion. For example, all states except Alabama and South Carolina mandate monthly, semi-monthly, biweekly, or weekly paychecks. Also, the majority of states expect employers to furnish notice of payday requirements to their workers.
3. Question: Do employers have a legal obligation to provide terminated employees with other forms of compensation at separation?
When workers quit or are terminated, the employer is obligated to pay the final wages of separated employees at the time of separation in full or no later than the next scheduled payday. No severance is due unless an individual employment agreement or contract provides for it. Final compensation can include salaries, acquired bonuses, wages, earned commissions, the financial equivalent of earned vacations and holidays, and other compensation as determined by the contract that has not been paid and is owed to the separated employee.
4. Question: What can employees do if their paychecks are late?
Each state has individual procedures to follow if a paycheck is missed. In general, employees may do any of the following if their employers do not pay on time or regularly:”Contact the owner in writing and ask for the wages owed”Consider filing a claim with the state labor agency if the employer refuses to pay”File a small claims or superior court suit for the amount owed”Hire a labor attorney for larger cases or advice on payday laws
Employers can always pay workers sooner or more often than the minimum periods ordered by state payday laws, but not less frequently or later unless a state law permits such an exception.
5. Question: When can an employer withhold an employee’s wages?
Employers may only withhold employees’ wages when the employee provides prior written authorization, if the employers are required by federal or state law, or a reasonable good faith dispute exists surrounding the amount of earnings due, including any set-offs asserted by the employer, recoupments, reimbursements, or counterclaims. For instance, an employer cannot deduct money for damages or unreturned equipment.
6. Question: Is it mandatory for employers to publish payday calendars?
Most companies select a pay schedule based on their business conditions. Determinants including whether employees are in the same office or dispersed across a broad territory, the number of staff, automated payroll processes, and cash flow can affect how an organization decides to pay its employees. Weekly paydays are convenient for some companies, particularly if there are significant changes weekly in the workforce. For example, temporary staffing agencies might pay weekly to simplify bookkeeping methods due to most of the employees having short-term assignments that last less than a week.
7. Question: Can employers delay paychecks until time sheets are turned in by employees?
No, it is the companyÂ´s obligation to record the hours worked and pay all workers on standard paydays. Other disciplinary measures may be taken if an employee fails to meet expectations, such as failing to turn in time sheets.
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