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May07

payday in Missouri

In Missouri is there a law about holding a employees check after the established payday?

The best practice in Human Resources is to pay employees on time. Several states including Texas, Illinois and California have laws that specifically require an employer to pay workers on the stated payday. The employer can designate which day is payday (within limits) but must issue paychecks on that day. These are informally called *payday* laws.

Missouri does not have a specific *payday* law. The Missouri minimum wage law specifies that employees will be paid within 16 days of the end of the payperiod, and at least twice monthly. However, that provision of the law applies only to corporations — not all Missouri employers.

Ironically, federal law does not include a specific provision that employees be paid on payday, although this may be interpreted by the U.S. Department of Labor as violating the minimum wage law — espeically if the check is held for several days or longer.

The major riskĀ If you hold paychecks very briefly — say, for one day — is that employees will report this to the Missouri Department of Labor, and the U.S. Department of Labor. It is unlikely that either agency will fine you, unless this offense is repeated.

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This entry was posted on Thursday, May 7th, 2009 at 9:59 am and is filed under
Compensation, Human Resources Management.
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