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Don’t delay overtime pay

by on
in Human Resources

Don’t delay overtime pay, even if employees ask. Pay it at about the same time you pay for regular hours. A recent court decision affects the timing of overtime payments, which many employers delay for several weeks. The case: When its police union asked that overtime be accumulated and paid in separate monthly checks, a New Jersey city agreed. But a few officers balked and sued, and an appeals court sided with them. The court said payments may not be delayed longer than reasonably necessary for the employer to compute the amount and arrange for payment. (Brooks v. Village of Ridgefield Park, 3rd Cir., No. 98-6357, 1999) Bottom line: Overtime payments can’t be delayed beyond the next pay period after the calculation can be made.

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