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Leap-Year compensation: cutting the check

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in HR Management,Human Resources

Q. I am new to HR and our payroll department just told me they’re lowering salaried employees’ pay next year to offset the additional pay period caused by the leap year. They said salaried employees are paid based on a yearly amount, and we normally have 26 pay periods but we will have 27 in 2008. My initial thought is, “This is not going to go over well.” — J.S., Pennsylvania

A. Your company can minimize employees’ distress by informing them well in advance that their biweekly paychecks in 2008 will reflect a slightly lower amount than in the prior year due to the additional pay period. You also should provide the estimated difference so employees know what to expect. And remind them that they’ll still earn the same total compensation for the year.

You may still receive complaints, but they should be few in number and resolved with a brief discussion.

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