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Changing payroll cycle (various states)

On Lawyer & Legal » Employment & Labor Law

2,026 words with 3 Comments; publish: Wed, 08 Aug 2007 15:01:00 GMT; (80062.50, « »)

If I want to change the payroll cycle for non-exempt employees (from weekly to bi-weekly or bi-weekly to monthly), am I required to provide specific notice? Of course, I would provide notice, however I wasn't sure if I'm legally bound to give a notice a month ahead, 2 months ahead, etc. The employees that would be affected are in Texas, Michigan, New Jersey, and Pennsylvania.

Thank you.

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    • I looked up all those 4 states and Texas is the only state that has specific requirements for pay frequency--non-exempt employees must be paid at least twice a month. I didn't find anything else other than that the employees must be made aware of the pay dates.

      Thanks again.

      #1; Thu, 09 Aug 2007 06:23:00 GMT
    • You would need to check the laws of each state to see what the requirements are.

      I have no clue about any of them.

      My state requires thirty days notice of an increase in the payroll frequency.

      Interesting, we only need to notify employees one day before their wages are reduced (although there was an effort to make that thirty days, too).

      #2; Wed, 08 Aug 2007 15:13:00 GMT
    • I'm not where I can check right now, but very few states require a specific notice period under the law. If any of those states do, I'll get back to you sometime tomorrow.

      Have you checked to make sure your nonexempt employees can be paid monthly? IMHO (and 30 years of payroll experience), semi-monthly or monthly can be a bear for calculation of overtime for nonexempt employees, unless you have a very good Time & Attendance package.

      Also, since you are considering converting to a less frequently paid cycle, you want to give as much notice as you possibly can. At least 3 months would be preferable and communicate, communicate, communicate. Flyers, examples of paystubs, FAQs, etc. Many people live paycheck to paycheck and they will need to do some budgeting/preparation, etc. if they will be paid only half as often. If you give enough notice and provide plenty of communication and feedback, you shouldn't have to entertain salary advances.

      #3; Thu, 09 Aug 2007 05:29:00 GMT