Michigan Company payroll has missed hours every pay period

[SecurityGuy]

Hello,

I work for a security company in Michigan and it seems that every week there is something wrong with paychecks. This week I've got 10 hours missing (the overtime hours). This isn't the first time this has happened, it happens every pay period . The company uses a call-in telephone system to track our hours instead of time cards so if we don't track our own hours there is no paper trail to take back to management. They usually give us the back hours but not until the next pay period and then you have to double check to make sure you received the overtime pay. I've been working for this company nearly three years now and it has happened every pay period.

Is there anything that can be done to get the company to stop this practice? Is there anything illegal about this?

Sincerely,
SecurityGuy

[cbg]

Let me ask you a question. What day do you receive your paycheck, with relation to the end of the pay period? As an example, let's say that today, June 10, is payday and that you get paid every two weeks. Is the check you receive today for May 28 - June 10, or for May 21- June 3?

[SecurityGuy]

Let me ask you a question. What day do you receive your paycheck, with relation to the end of the pay period? As an example, let's say that today, June 10, is payday and that you get paid every two weeks. Is the check you receive today for May 28 - June 10, or for May 21- June 3?

We do get paid every two weeks and the period for this particular period was from May 21 to June 3.

I've also heard now that some staff have gotten paychecks for $1 per hour instead of their normal rate and have been told that they will have to wait two weeks to get the issue corrected.

[cbg]

So you're saying that today, June 10, you got paid for May 21 through June 3?

I need you to be specific because whether you are paid current (on June 10 you get paid for the period ending June 10) or in arrears (on June 10 you get paid for the period ending on June 3) matters to the answer.

[J.J. Brown]

Also, the 10 overtime hours that are missing - what week were those worked?

[SecurityGuy]

So you're saying that today, June 10, you got paid for May 21 through June 3?

I need you to be specific because whether you are paid current (on June 10 you get paid for the period ending June 10) or in arrears (on June 10 you get paid for the period ending on June 3) matters to the answer.

My apologies, yes we got paid today (June 10) for the period ending June 3rd.

[SecurityGuy]

Also, the 10 overtime hours that are missing - what week were those worked?

The overtime hours were also worked in the period ending June 3rd.

[SecurityGuy]

Any updates on this???

Just wondering if anyone has more information for me on this issue.

TIA,
SecurityGuy

[DAW]

I can give you a real soft answer. Your state is not my state and this sort of thing is state specific. I can say that if we set the clock back to say 1960, then all payrolls were paid on what is called a "current" basis. Otherwise known as guessing. The employer makes a best guess at what the payroll should be and pays based on the guess. Then they correct the (many) errors on the next payroll. Since for a very long time, that was how all payrolls were done, states payday laws tended to follow that model. A guess followed by a next period correction used to be legal in all states.

Now today very few employers still pay "current". They instead pay on a "lag" basis, where the pay period finishes, then several days later the employer accurately computes the payroll based on real information. HOWEVER!!! the pay day laws have mostly not changed. They still reflect the currently non-existent need to take an entire pay period to do the calculations correctly (the pre-computer model).

I am not expert in MI law. I do not want to be expert in MI law (not my state). What I can say is that in most states what you describe is either legal, or so slightly illegal as to not matter. In my state (CA) which has the most employee friendly laws in the country, not only is lagging for one pay period generally legal, but even if the employer somehow manages to break the law, the penalties go to the state, not the employee. I cannot say as a fact that MI does not care about corrections being paid in a later pay period, but it would be very unusual for them to care much.

I understand that this is not what you want to hear.

[J.J. Brown]

The best advice I can give you:

1 - Make written notes of the time you are recording on their system, and keep that information at home.

2 - You need to continue to point it out each time they get your check wrong.

3 - You could file a wage claim with the DOL if they pay you incorrectly.

The people who are getting $1/hr checks are not being paid at least minimum wage. Having to wait until the next pay period for the correction to be made would be unforgiveable at my company. A wage claim might take longer and the error could be fixed by the time the DOL sends an inquiry, but I would still file one based on the lack of receipt of at least minimum wage. That could get someone's attention.

There are no federal laws that mention what to do with payroll errors. Company practice varies wildly. Some payroll people want to fix it that day with a manual check. Others tell you it will be fixed on the next payroll. Federal law appears to assume that payroll never makes mistakes. There could be a handful of states that consider this scenario a real possibility, but not my state. However, this is a real possibility that can cause a lot of problems for ees if employers take advantage of them.

You could file a wage claim each time they get it wrong, but if it is corrected on the next check, the DOL doesn't have much to investigate. However, based on a complaint or multiple complaints, the DOL could come in to audit the entire company, and could give the company some much-needed guidance on how to prevent/handle payroll errors in future. Given the lag time between the end of the pay period and the paydate, they should not be getting it wrong each time.

I realize that is vague advice, and it is up to you to determine if it is worth it to file a claim. The takeaway should be "make good notes of your time and stay on top of your paystubs."

Good luck to you.

[RRPayroll]

I'm surprised that they don't have a supplemental payroll process for mistakes on checks or for pay that drops out.

I'm more surprised at the absolute acceptance of these errors that your company has. There will always be mistakes or issues that occur, but errors should be practically eliminated in an efficient payroll department.

[HRinMA]

I'm surprised that they don't have a supplemental payroll process for mistakes on checks or for pay that drops out.

I'm more surprised at the absolute acceptance of these errors that your company has. There will always be mistakes or issues that occur, but errors should be practically eliminated in an efficient payroll department.

Issuing of out of cycle payroll checks at my company depends on who made the error. At my company we will issue checks due to company error but not employee error. We feel the consequences of not having the money will ensure the employee is more careful in the future with their punching. We do operate in Michigan.

[SecurityGuy]

I'm surprised that they don't have a supplemental payroll process for mistakes on checks or for pay that drops out.

I'm more surprised at the absolute acceptance of these errors that your company has. There will always be mistakes or issues that occur, but errors should be practically eliminated in an efficient payroll department.

The company doesn't offer out of cycle payroll checks they said because they "require all employees to have either direct deposit or payroll debit cards (they want to go paperless)". Therefore there is no way to print a payroll check out of cycle. Most of the employees didn't even notice this weeks "discrepancies" until they went home to print out their online payroll check stubs.

[RRPayroll]

That doesn't make any sense. If an employee's profile is set up with DD information, then a supplemental check should default to issuing the payment to their bank account. The pay cycle it is issued on is irrelevant. And if the system doesn't have that functionality somehow, they should just issue a check. Not that it makes this illegal somehow, it's just bad business practice and is an incredibly weak argument.

[J.J. Brown]

For the ones who didn't get minimum wage and have been told they will have to wait until the next payroll date to get it, I would advise them to file a wage claim with the DOL.

It is not the ee's problem that "there are no manual payroll checks because we have gone paperless for payroll." There is an operating account with money in it, and they can draw checks from that account. It is absolutely within reason for the company to be expected to comply with the law and pay its employees the correct wages, on time. When the wages aren't correct, the company should have a process make it right that does not deem paying an ee $1 per hour for two weeks of work will suffice until the next pay period. A company can also process an extra payroll or issue another direct deposit any day of the week. There is no law that says it must be on a certain day.

Good luck.