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Jan17

Semi Monthly Pay Periods for Hourly Employees

If a company is paying there salaried employees from the 1st to the 15th and the 16th through the 31st, what is the cut off for hourly employees? Should the company have a cut off date before the 15th? For example, can you pay a hourly employee from the 1st to the 6th, then the 7th to the 12th then the 13th through the 19th and 20th to the 28th? Thanks for any advice.

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.

Under the FLSA, an employee’s workweek is a fixed and regularly recurring period of 168 hours — seven consecutive 24-hour periods. It need not coincide with the calendar week, but may begin on any day and at any hour of the day.

Employers are permitted to establish different workweeks for different employees or groups of employees, such as non-exempt and exempt employees.

The FLSA doesn’t set standards for pay periods or pay dates. Keep in mind some states have adopted such regulations. Of those states, it’s most common for employers to pay employees semi-monthly. However, absent state law or employment contract, employers are free to establish pay periods and pay dates at their discretion. The FLSA does mandate that owed wages are due on the regular pay day for the pay period covered.

This entry was posted on Sunday, January 17th, 2016 at 1:35 pm and is filed under
Compensation.
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