Group,
Have just learned that a Town I represent does payroll in a way that is a little strange and I am not sure is completely legal. Here is how it works currently:
"Our pay dates are the 15th and the last day of the month. So, in order for me to do payroll and have it done and ready to direct deposit it on the pay dates it has to be done two to three days ahead of time. So those two to three days I have to just figure in what they are scheduled to work. If they work less than what I have paid them, I will deduct that from the next pay period if they work more than what I paid them I will add that to the next pay period."
So, my question is, can they do this legally?? I realize that things are corrected the "next pay period" but doesn't that amount to paying people for services not rendered?
Your thoughts, as always, are appreciated.
Larry Vickers, Jr.
Attorney At Law, P.L.L.C.
600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
&
303 South Thornton
Vian, Oklahoma 74962
Phone: 918-773-4004
http://www.lvickerslaw.comhttp://www.lvickerslaw.com/
E-mails from this firm normally contain confidential and privileged material, and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited, and may be a violation of law. If you believe that you received this e-mail in error, please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, including any copies thereof, and inform the sender that you have deleted the e-mail, all attachments and any copies thereof. Thank you.
Larry, I wouldn't worry so much about paying for services not rendered
(since that's quickly corrected if it happens) as I would about violating
DoL regulations.
It sounds like the town doesn't have a defined pay period as opposed to a
payment date. The pay period must be established as a specific 7 day period
(i.e., 12 a.m. Sunday through 11:59 p.m. Saturday). Do you think they are
complying with that rule?
I once had a client who was not doing this correctly and they adjusted it to
allow for a week between the end of the pay period and payment date. It
caused a short paycheck at the very beginning, so they made some sort of
adjustment as I recall.
I hope that's helpful, even though it's a little off topic.
Kim
From: Larry Vickers larry@lvickerslaw.com
Sent: Friday, March 11, 2022 10:06 AM
To: OAMA@lists.imla.org
Subject: [Oama] Pay Periods
Group,
Have just learned that a Town I represent does payroll in a way that is a
little strange and I am not sure is completely legal. Here is how it works
currently:
"Our pay dates are the 15th and the last day of the month. So, in order for
me to do payroll and have it done and ready to direct deposit it on the pay
dates it has to be done two to three days ahead of time. So those two to
three days I have to just figure in what they are scheduled to work. If they
work less than what I have paid them, I will deduct that from the next pay
period if they work more than what I paid them I will add that to the next
pay period."
So, my question is, can they do this legally?? I realize that things are
corrected the "next pay period" but doesn't that amount to paying people for
services not rendered?
Your thoughts, as always, are appreciated.
Larry Vickers, Jr.
Attorney At Law, P.L.L.C.
600 Emporia Street, Suite B
Muskogee, Oklahoma 74401
Phone: 918-682-5900
&
303 South Thornton
Vian, Oklahoma 74962
Phone: 918-773-4004
http://www.lvickerslaw.com http://www.lvickerslaw.com/
E-mails from this firm normally contain confidential and privileged
material, and are for the sole use of the intended recipient. Use or
distribution by an unintended recipient is prohibited, and may be a
violation of law. If you believe that you received this e-mail in error,
please do not read this e-mail or any attached items. Please delete the
e-mail and all attachments, including any copies thereof, and inform the
sender that you have deleted the e-mail, all attachments and any copies
thereof. Thank you.