- State law may dictate how the employer should handle paycheck distribution.check in macro image by Alexey Klementiev from Fotolia.com
The United States Department of Labor, Wage and Hour Division regulates the federal wage laws. The state labor board administers the state wage laws. Notably, the Department of Labor does not have specific laws pertaining to paycheck distribution, but the state might. - The Department of Labor requires employers to pay employees for time worked according to the established pay period. The employer must pay the wages due in an accurate and timely manner. Nonpayment of wages due is a violation of the Fair Labor Standards Act (FLSA), which governs federal wage laws. Though federal law does not require the employer to abide by a specific income payment or collection method, some states do.
For example, the California Department of Industrial Relations requires wages to be paid at least twice per month on the days established as regular paydays. The department lists the specific days employers must pay certain employees by, according to the pay cycle. The employer should contact its state labor board to see if specific laws apply to the method of payment, such as direct deposit, cash or check. Additionally, some states require employers give employees a pay stub, but some don't. If a pay stub is required, the state may require that it include specific information regarding the employee's pay. - Federal law does not require employers give employees their last paycheck immediately upon termination. But according to the Department of Labor, state law might. For example, if a Colorado employer discharges an employee, it must pay all wages due immediately. However, exceptions apply in the following cases: If the payroll department is not in operation, wages are due to the terminated employee no later than six hours after the payroll unit's next regular workday. If the payroll unit is off-site, the employer must deliver the payment to the terminated employee by 20 hours after the start of the payroll unit's next regular workday.
The employer can deliver the payment at the workplace, at its local office, or to the employee's last known address. If the employee quits or resigns, the employer must pay wages due by the next regular payday. The employer should check its state labor board requirements for final paycheck distribution laws. - The Department of Labor can bring court action against employers that do not pay employees at least the federal minimum wage, if applicable. If the state has a minimum wage act, which is higher than the federal minimum wage, the employer must pay the employee at the state minimum wage. The employee can file a wage claim with the state labor board or file a private suit if he doesn't receive his regular wages or final paycheck.
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