There are many regulations regarding employee wages and compensation. While it is important to understand minimum wage requirements, overtime regulations and work-hour limitations, it is equally essential to understand the rules that dictate how often employees must be paid. Laws refer to these as “pay day requirements,” and while a standard is always set, many exceptions exist. These rules vary extensively from state to state and may also depend on other factors such as type of employment. Understanding the law is imperative to compliance and avoiding legal hang-ups.
Weekly States
A handful of states require employers to pay their employees on a weekly basis. Many of these municipalities grant exceptions for salaried or other high-wage employees. A quick check with the state labor department or the United States Department of Labor’s Wage and Hour Division will produce the needed information and details. States that require weekly pay for at least some workers include:
- California
- Connecticut
- Iowa
- Massachusetts
- Michigan
- New Hampshire
- New York
- Rhode Island
- Vermont
Only Vermont, New Hampshire, Massachusetts and Iowa do not grant exceptions based on occupation or other factors. Some states, such as Rhode Island, have very specific exceptions for certain occupations, such as childcare providers.
Bi-Weekly States
A larger number of states require companies to pay their staff on a bi-weekly basis. This compensation schedule must occur on the same day of the week every second week in order to be in compliance with the law. States that require this pay timetable for some or all of their wage earners include:
- California
- Indiana
- Iowa
- Louisiana
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Rhode Island
- Vermont
- Virginia
- West Virginia
Several of the above offer exceptions for high-wage employees, and others, such as California, have different requirements based on occupation.
Semi-Monthly States
Many states mandate that compensation be given out semi-monthly, though the definition of this varies greatly based on the legislation. In Arizona, for example, semi-monthly pay days must not occur more than 16 days apart. The state department of labor can offer insight into technicalities of the law and the exceptions. Semi-monthly pay states include:
- Alaska
- Arizona
- Arkansas
- California
- District of Columbia
- Georgia
- Hawaii
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Michigan
- Minnesota
- Mississippi
- Missouri
- Nevada
- New Jersey
- New Mexico
- New York
- Ohio
- Oklahoma
- Rhode Island
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Wyoming
Possible exceptions to the semi-monthly requirement include industry-specific exclusions as well as changes for companies employing more than 50 individuals.Monthly StatesMany states require only monthly pay, especially for salaried or high-wage employees. Exceptions may include overtime pay or special situations that require written notification to the employee. Those that require monthly pay for some or all employees include:
- Alaska
- Colorado
- Delaware
- Hawaii
- Idaho
- Illinois
- Iowa
- Kansas
- Michigan
- Minnesota
- Nevada
- New Jersey
- New Mexico
- North Dakota
- Oregon
- South Dakota
- Texas
- Utah
- Virginia
- Washington
- Wisconsin
End of Employment Pay
When an employee leaves a job, either voluntarily or at the discretion of the employer, the final pay check must also follow several regulations. Some states require immediate payment on the last day of employment, several give 72 hours and others allow the payment to be made on the next scheduled pay day.
Overtime and Other Special Situations
Overtime pay is normally required to be given at the same time as pay for the hours during that particular pay period. Overtime workweeks do not necessarily have to coincide with this timetable, and so some overtime pay may carry over into the next period if the workweek doesn’t line up exactly with pay day. If employees are required to log their own hours or turn in a time card, pay may not be withheld if this record is not submitted on time. Employers should do their best to estimate the wages and then make any corrections on the next check. Knowing the particulars of state law is key to scheduling pay periods and remaining in compliance with all pay day regulations.
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The content on our website is only meant to provide general information and is not legal advice. We make our best efforts to make sure the information is accurate, but we cannot guarantee it. Do not rely on the content as legal advice. For assistance with legal problems or for a legal inquiry please contact you attorney.