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Jan07

Payday on Non-Business Day

If a salaried employee is set up to be paid on the 1st and 15th of the month and that day falls on a non business day, is the employer required to pay the business day before or after?

The federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. Though the FLSA requires due wages to be paid to employees, it doesn’t stipulate exactly when employees must be paid. Some states have adopted more detailed regulations on the matter.

Absent state law, it’s up to the employer to decide how paydays that occur on a non-business day will be managed. Generally, when payday falls on a non-business day such as a weekend or holiday the payment is provided on the next business day.

This entry was posted on Thursday, January 7th, 2016 at 8:11 pm and is filed under
Compensation.
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