Timely Payment
HR Jungle

Timely Payment

"I'm not sure I have enough money available to make payroll next week. Can I pay my employees later, after a client pays a big invoice?"

Your HR Survival Tip

No! Absolutely not! If you don't think you'll be able to pay them completely AND on time, have them stop working immediately.

California is very clear and very protective about employees being paid in full and at exactly the same time every pay period. Of course there are laws about this:

  • The employee must receive their pay within 7 days of the time worked. For example, if you are paying every 2 weeks, you only have 7 calendar days after that 2-week period ends to get a check in their hand. 
  • If you are using semi-monthly pay periods (twice per month) of 1-15 and 16-last day, the latest you can pay is the 26th and 10th, respectively. If your semi-monthly pay periods are on another schedule, such as 10-26 and 27-9, you must pay within 7 calendar days.
  • You must post your pay day and the rules about it. If the pay day falls on a Saturday, Sunday, or holiday, you may pay the next business day. However, you need to state what your policy is... you can't fluctuate from month to month. There is a part of every employment law poster to fill in this information. You can only delay a paycheck on holidays listed in the Government Code but this includes the standard holidays.
  • If an employee has failed to turn in a timecard, you must pay for the scheduled time and then reconcile it later.
  • Overtime from one pay period may be paid in the next pay period but absolutely no later than that. I'd save this for overtime worked that you didn't know about.

Look at the dates from when the work period ended to the time you must submit your payroll. Don't make it so tight you don't have time for the unexpected. If you are late or cannot pay employees for all time worked, you are subject to penalties and fines... and the Labor Commissioner can force payment. But, really,a big concern is that your employees will feel they aren't important to you if you can't even get them paid on time. 

Plan ahead. Business owners have to watch the money... but employees are watching the business owners.

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