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California Payroll Error-EE's underpaid 1 hour California

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  • California Payroll Error-EE's underpaid 1 hour California

    I have a small group of employees that were underpaid by 1 hour this past payroll due to the supervisor entering an incorrect paycode into our timekeeping system.

    The hour that the employees were short was for "show-up" time. We had a power outage and the employees were sent home after working 3 hours of their 8 hour shift. I have searched the web as to what the law is in regards to the timeframe of the shortage being paid to the employees and all I can find is information regarding "hours worked". Since this is not technically "hours worked", what is the legality of paying these employees prior to the next payroll in 2 weeks. I am not opposed to paying them prior to the next pay period, but I am looking at the cost effectiveness of the process since the net checks for the 1 hour would be around $15 each.

    Thanks for the assistance!

  • #2
    We need to be clear on exactly what the issue is here. If you are asking is CA ok with you paying the additional show up time on the following payroll, the answer is that CA is fine with that. A long time ago pretty much all payroll in CA and everywhere else were paid "current". Basically the employer guesses the correct amount and corrects into the following payroll. Automation was so poor back then that this was the only viable method once upon a time. The payroll laws did (and still do) reflect that. Now most employers pay on a lag basis, essentially waiting until good data, then processing correct payment, but the old laws allowing reasonable corrections to be put off until the following period are still in place. As long as the employers do not routinely abuse this, CA-DLSE will be ok. A one time incorrect handling of show up pay is not a big deal as long as it is promptly and correctly fixed into the following payroll.

    I am assuming that you are not asking what is due, just how to handle the late payment.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      Thank you for the quick response. That is exactly what I was looking for. I wanted to make sure that we would not be in violation of any laws if we made the correction on the next pay period.

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      • #4
        Do they even need the show-up pay? I'm not in CA, but my state has reporting pay too, and is almost (not quite) as rigid about it in CA. But in MA, it would not be required in the event of a power failure because that is not something within the employer's control. Does CA?

        I mean, great if you want to offer it anyway, but if it's voluntary, that's even less of an issue for paying it late.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          The general rule is that you have to pay 1/2 of scheduled shift if all other conditions are meet. Power failure is indeed one of the exceptions. And the factsheet does a good job of spelling out the exceptions. The CA-DLSE goes over this in more detail but the factsheet is pretty good as is.
          http://www.dir.ca.gov/dlse/FAQ_ReportingTimePay.htm

          FYI, the official CA term is "reporting time pay" although "show up pay" is also a commonly used phrase. Same thing.
          Last edited by DAW; 09-28-2012, 08:56 AM.
          "Reality is that which, when you stop believing in it, doesn't go away".
          Philip K. **** (1928-1982)

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