Q. When an employee fails to clock in or out properly, our payroll department withholds that day’s pay until the next pay period as a form of employee discipline. My understanding is that an employer can’t hold back portions of pay as punishment. Am I right?
A. Yes. Under the Pennsylvania Wage Payment and Collection Law, employees must be paid on regular paydays. It is not permissible to withhold or delay pay as punishment. Instead, you can discipline the employee by following a process of(or whatever process is set forth in your employee handbook or policies, if applicable)—which often takes the form of counseling, followed by a written warning, followed by probation/suspension and finally, termination of employment.
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