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In the Payroll Mailbag …

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in Office Management,Payroll Management

This month we return to the American Payroll Association’s annual Congress to cover questions posed to reps from the Department of Labor. Next month, we’ll cover questions posed to reps from other federal agencies.

Discipline and pay: Not a good combination

Question: One of our managers is holding employees’ wages as a training tool. When an employee turns in a late time sheet, the manager inputs the hours onto a time sheet for a later payday. Employees are still being paid, they’re just being paid late. Does this violate the law? Are there any circumstances under which we can hold an employee’s pay for disciplinary or training purposes?

Answer: Yes, it violates the law. Employees must be paid on the regular payday for the work performed. You can pay at the next payday if there’s an error that’s caused by a late time sheet (e.g., you couldn’t calculate overtime). But what you’re describing isn’t an error. As long as nonexemp...(register to read more)

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