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Payroll "Prepayment/Loan" California

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  • Payroll "Prepayment/Loan" California

    I am a non-exempt full-time hourly employee in California. Recently, our company was sold and the new company sent out a payroll e-mail stating: "To align our payroll schedules, we must withhold one week of pay from non-exempt (hourly) employees. We will advance you one week of pay on January 11, 2008. We will then recuperate this advancement of pay throughout the 2008 calendar year."

    On Jan 11, I received my normal two weeks of pay. However, all of my bi-monthly paychecks afterward have been deducted the amount of the "prepayment," or "loan," as it's called on my pay stub.

    The company sent out letters requiring our signatures, so they got our consent beforehand. However, my question is this: I worked the first and second weeks in January. I don't understand how the company could say it's advancing me a week's pay when I actually worked that week, let alone how they could call that advancement a loan that needs to be payed back each paycheck. Doesn't that mean I'm not being payed for a week's pay AND my paycheck's being deducted for a loan? Is this legal? It seems to me that I not only lost a week's pay, I'm being charged for it each paycheck.

    Thanks for any replies I receive -- neither I nor my fellow non-exempt employees understand this issue, and HR/payroll have failed to clearly explain why this is happening.

  • #2
    Duplicate post - see http://www.laborlawtalk.com/showthread.php?t=186503
    Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

    Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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    • #3
      I apologize -- I realize I posted in the incorrect forum. I have read your responses, though, and am curious about your opinion on the issue. Thank you!

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      • #4
        See the replies on the thread above & note the add'l. information requested.
        Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

        Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

        Comment

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