For our part time workers and contractors, we are exploring paying them less frequently. Currently we pay them monthly, but for some types of work, we would like to pay them every two months, perhaps even quarterly.

The amounts are small [$100 - $500], and the number of payments large [hundreds] so we are hoping to save on administrative costs. Does anyone know the pertinent California Labor Law, and if lessening the frequency is permissable?

Thanks!

I can't answer for contractors, and I can't provide any links, but I guarantee you that you can't pay employees less frequently than every month; in fact, if these are non-exempt employees, even monthly may well be outside the law. You may legally have to pay them MORE frequently, not less frequently.

perhaps even quarterly.

Holy Smokes!

If I had a potential client that wanted to pay me on a quarterly basis, I would drop kick them out the door.

You CANNOT do that to employees in California. As I recall, you MUST pay them at least twice a month.

I don't know (and don't care) about California rules about payment to contractors, but I would never agree to work on the basis of being paid once a quarter.

Are you misclassifying these "contractors"? Should they be called employees?

I suspect you have more problems. Good luck.

That's correct, ScottB. If these workers are employees, they must be paid at least twice per month.

Labor Code Section 207 Wages earned between the 1st and 15th days, inclusive, of any calendar month must be paid no later than the 26th day of the month during which the labor was performed, and wages earned between the 16th and last day of the month must be paid by the 10th day of the following month. Other payroll periods such as weekly, biweekly (every two weeks) or semimonthly (twice per month) when the earning period is something other than between the 1st and 15th, and 16th and last day of the month, must be paid within seven calendar days of the end of the payroll period within which the wages were earned. Labor Code Section 204
http://www.dir.ca.gov/dlse/FAQ_Paydays.htm

And, BTW, keeping track of overtime pay is an administrative nightmare if you pay semi-monthly. As someone with over 28 years of experience in payroll and compensation, I strongly recommend you pay at least biweekly.

And, also from ScottB I suspect you have more problems.

So do I, Scott, so do I.