Spaghetti_Monster
06-25-2009, 05:06 PM
My company is switching payroll systems. We are now going to be paid twice a month instead of every other week. No biggie. The big thing and what concerns me is that OT will not be paid until the following pay check. For example. If I were OT at the begining of the month, I would not get paid for until the last check of the month. Only the 'normally' scheduled hours will be on the paycheck on the 15th. I thought I had seen something about having to be paid within 10 days of the end of the pay period. I brought this up to payroll and they said that doesn't apply to OT. Is that right?
Pattymd
06-25-2009, 05:18 PM
Even in the arguably most employee-friendly state of California, the law allows OT to be paid on the following paycheck. Arizona is not my state, but I doubt very seriously that this would not be true there as well.
AZ is also not my state. I can say that most state pay day rules are decades old (many decades old in some cases). Say 30-40 years it would have been mechancially difficult for most employers to correctly calcuate overtime rapidly. It was very common back then for employers to pay "current", which basically means guessing, then fixing the errors on the next paycheck. Most/all state pay day laws still not only allow this, but do not formally restrict paying overtime the next pay period to those employers who still pay "current".
Most employers today pay on a "lag" method, say one week after the end of payroll. This gives the employer enough time to collect correct time accounting information and accurately calculate the payment (including overtime) during the current pay period.
What you describe sounds like some variation of the old "current" method.
Spaghetti_Monster
06-26-2009, 08:51 AM
OK, thanks for the feedback. Just sucks becuase currently we do the '1 week behind' thing and we are going to a pay system that is even more antiquated. Since my Company was bought benifits have really gone down hill. Stock match dropped from %50 to %15, 401k match dropped all together just to name a few.