BigRedConsulting
Community Champion

Employees and payroll

RE: It does say in our company manual that direct deposit will be funded on Wednesday, and that workers paid by check will receive it on Monday. We had to make that change when we started offering direct deposit in 2018. ...Are we compliant with those rules in our manual?

 

I don't think so. You're penalizing your employees for choosing DD and making them wait two days past the payroll date to be paid.

 

For example, in California,

https://www.plbsh.com/california-employment-laws-can-my-boss-pay-me-late/

"However, for all other California employees, if the state determines that there is no valid reason for a delayed payment, then it will be assessed a penalty of $100 for the first violation [per employee who is paid late.] Each additional violation will result in a $200 penalty. In some cases, the state may require your employer to pay additional fees on top of penalties. Importantly, even if your employer disputes the total amount owed to you, it still has to pay you the full amount of wages owed on time to avoid the penalties. If it fails to do so, an experienced California employment lawyer can help you examine your options.

 

And also, from

https://nakaselawfirm.com/employers-attorneys/is-it-illegal-to-pay-my-employees-late/

"The Fair Labor Standards Act was created to protect laborers. All employers must meet the minimum requirements of the FLSA and any state employment laws which supersede it. Employers must pay their employees promptly, meaning on the next payday after the pay period in which the hours were worked. The employee must be paid for all hours worked during that pay period, including overtime."

 

RE: Of course, that's when Quickbooks started sending me all those errors.

Yes, when QB can tell the DD orders aren't going to make it on time, it warns you because it's trying to help you be complaint.