Understanding Pay Schedules and Employers Withholding Paychecks
It's essential for both employees and employers to understand the terms and conditions of a pay schedule. If a company states that it pays weekly, then presumably the employer is expected to adhere to this schedule. However, if the employer holds back the first two paychecks for a month, it contradicts the agreed-upon pay schedule and raises significant concerns regarding the legality and ethical obligations of the employer.
Are Employers Allowed to Withhold Paychecks?
According to labor laws and employment contracts, employers are bound to set and adhere to a clear and agreed-upon pay schedule. If the agreed-upon schedule is weekly, then employees should receive their paychecks on the next payday, which means one week behind. Holding back the first two paychecks for a month is contrary to this agreement and can lead to legal actions or disputes.
In cases where company policy specifically states that the first two paychecks can be withheld, employees typically receive their first paycheck for the first week of work at the end of their third week with the company. This policy is often documented in an employment contract, which must be signed by both the employer and the employee before the employee starts the job.
Legal and Ethical Considerations
If terms in the contract are not met, and such terms are listed and signed by both the company and the employee, this is a violation of the stipulated terms. Employees have the right to file complaints with the Labor Board for arbitration or even seek legal action. It is crucial for both parties to be transparent and adhere to the agreed-upon terms of employment.
For hourly or salaried employees, wages must be paid for every hour or every week as agreed, with no deductions except as explicitly permitted by law. Any deviations from the terms agreed upon can lead to disputes and legal violations. It is important for employees to be clear about their terms of employment before starting a new job. A signed and dated agreement should be kept in a safe place for future reference.
What to Do If Your Pay Is Withheld?
If you discover that your pay is being withheld without a valid reason, you should take the following steps:
Review your employment contract to check the terms and conditions regarding pay schedules and wage withholding.
Check with the payroll department for an explanation if the withholding persists.
Approach your supervisor, manager, or director if necessary for further clarification.
If the issue is not resolved, consult with the Labor Board or legal counsel for further guidance.
It's important to ensure that employers meet their obligations under the terms of employment. If an employer starts withholding checks in the second week of a pay period, and the first check is not paid until the employee's separation, it is still considered withholding, as payroll schedules should be consistent for all employees.
Regular communication and transparency are key in preventing such issues. If you have any specific concerns or need further assistance, please consult with the appropriate labor regulations or seek legal advice.