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Confused about moving out pay date... California

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  • Confused about moving out pay date... California

    I have a base salary which is paid bi-monthly: on the 15th and end of month. The check on the 15th covered the 1st-15th pay period and the check at month end covered the 16th through end of month.

    Starting this month (May 08) my company decided to move out the pay dates in order to give our acct. office more time to process payroll. So, instead of getting paid on the 15th (for pay period 1st -15th) we will be paid on the 20th. And instead of getting paid at the end of the month (for pay period 16th - end of month) we'll be paid on the 5th of the FOLLOWING month.

    My problem is this...because they have decided to make this change mid year, I am only going to get 1 paycheck this month (May 20th). My next check will come June 5, then June 20, and so on.

    By my math, I am going to be shorted 1 paycheck this year (23 checks instead of 24). Am I missing something here? I understand that they are only pushing out payment, but by doing it the way they are doing it, we are all having to deal with 1 check this month. Is this acceptable?

    Thanks,
    D.M.

  • #2
    The law doesn't say you have to be PAID XX many times per year. It is perfectly legal to change the pay date in relation to the pay period and, as a matter of fact, it's a much better payroll practice to pay in arrears than to pay current. Fewer errors, less "forecasting" (assumption of hours, for example) and therefore, fewer retroactive corrections.
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      Agreed. The actual CA law is copied below.

      CA Labor Code section 204.
      All wages, other than those mentioned in Section 201, 202, 204.1, or 204. 2, earned by any person in any employment are due and payable twice during each calendar month, on days designated in advance by the employer as the regular paydays. Labor performed between the 1st and 15th days, inclusive, of any calendar month shall be paid for between the 16th and the 26th day of the month during which the labor was performed, and labor performed between the 16th and the last day, inclusive, of any calendar month, shall be paid for between the 1st and 10th day of the following month. However, salaries of executive, administrative, and professional employees of employers covered by the Fair Labor Standards Act, as set forth pursuant to Section 13(a)(1) of the Fair Labor Standards Act, as amended through March 1, 1969, in Part 541 of Title 29 of the Code of Federal Regulations, as that part now reads or may be amended to read at any time hereafter, may be paid once a month on or before the 26th day of the month during which the labor was performed if the entire month's salaries, including the unearned portion between the date of payment and the last day of the month, are paid at that time. Notwithstanding any other provision of this section, all wages earned for labor in excess of the normal work period shall be paid no later than the payday for the next regular payroll period.
      "Reality is that which, when you stop believing in it, doesn't go away".
      Philip K. **** (1928-1982)

      Comment


      • #4
        thanks...

        I appreciate the replies. I still am having trouble accepting the fact I will now be getting only 1 check in May. But I guess that's what happens when you implement this mid year with all employees.

        Comment


        • #5
          Just make sure that all of your automatic payments are adjusted accordingly.

          I hate it when money is taken out of an empty bank account.

          Comment


          • #6
            Originally posted by GotSmart View Post
            Just make sure that all of your automatic payments are adjusted accordingly.

            I hate it when money is taken out of an empty bank account.
            Yeah, that can be a problem.
            I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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            • #7
              I am only posting this because I just read a post from a senior member which seems to address this situation. The quote is as follows:

              "In California, wages, with some exceptions, must be paid at least twice during each calendar month on the days designated in advance as regular paydays. The employer must establish a regular payday and is required to post a notice that shows the day, time and location of payment. 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"

              According to this quote an employee must receive at least two paychecks per month totalling at least 24 per year. PattyMD just said that the law does not say you have to be paid XX times per year. That contradicts the quote above. I am wondering which one is correct.

              Comment


              • #8
                Both. In the original question the employer changed the paydate. There is nothing in the law that says once the paydate has been established that it can never be changed. More important is the exact language of the law. For example, the law says 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 .
                - In the original question the employer was paying current. Wages earned 1st-15th were paid on the 15th. This is sooner then the 26th and is in compliance with the law.
                - The employer then changed their pay dates to pay on a 5 day lag. Wages earned 1st-15th were now being paid on the 20th. This is also sooner then the 26th and is still in compliance with the law.
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)

                Comment


                • #9
                  yes, my problem is not with them moving the pay date out. Most of the companies I have worked for paid in arrears to some extent. It's that as a result of this decision happening mid year, we are all only getting 1 paycheck in May. This would seem to contradict the law that indicates employees are entitled to 2 pay checks per month when being paid bi-weekly.

                  The lost paycheck for May won't be made up until that time I quit (or get fired). The analogy I was given by management is that if I had started with the company this month, say on the 1st...I would also only get 1 paycheck and this does make sense to me but, I don't know, as a salaried person I will only be paid 95% of my salary in 08.

                  Any help with this is always appreciated.

                  Comment


                  • #10
                    Your salary will be paid for the time period it is targeted for. Your check on the 5th will be for the pay period of 15th to 31st. You are stressing over a non issue. They did not rip you off.

                    Comment


                    • #11
                      Your pay is not being delayed until you leave employment. As previously stated, all that is happening is that the pay date is being changed from paying "current" to paying "in arrears". The company is not doing anything illegal. You need to deal with it at this point. There is no violation of law and there is nothing you can do about it.
                      Pattymd
                      Senior Member
                      Last edited by Pattymd; 05-16-2008, 03:30 AM.
                      I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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                      • #12
                        OK...thanks all

                        Comment

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