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Withholding Pay as
Discipline
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We have several nonexempt employees whose time cards are
chronically late or incomplete. May we discipline them by
withholding their pay until they follow our rules properly?
Almost every state requires employers to pay employees on
regularly scheduled pay days. Therefore, if you withhold an
employee’s pay beyond the required pay day, you may violate state
law requiring timely wage payment.
For example, California, Illinois, Michigan, and New Jersey all
specify a minimum of biweekly or semimonthly wages for most
categories of employees and require payment within a period ranging
from 10 to 15 days after the close of each pay period. In addition,
some states have special requirements for weekly pay, while others
allow for monthly payment. For example, New York specifies weekly
payments for manual laborers. Colorado, Wisconsin, and Washington
require only monthly payments to employees.
To ensure compliance with state wage payment laws, employers
instead should discipline these employees by using nonmonetary
actions, such as written warnings or even suspensions for repeat
offenders. For most employees, the threat of further discipline
provides sufficient incentive to turn in their time cards properly.
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This article is not intended as
legal advice. Readers are encouraged to seek appropriate legal or other
professional advice.
Copyright 2004 Personnel Policy Service, Inc.
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