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Withholding Pay as Discipline      |    Free Pay Procedures Policy

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? Get your FREE access to this and 100's of FREE HR resources today.

[Creating HR Policies or Employee Handbook?]

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.

                                        [Download Free Policies]

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.

 
 

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