Can I pay OT next pay period?

Well, I know I can't really, but my question has more to do with how quickly, and to what cost, to remedy finding out about overtime after payroll has been processed.

Ex: Sarah works over time and doesn't put it on her timesheet. Her timesheet without OT is submitted Friday, and based on that we instruct ADP on her paycheck to be delivered Thursday.

On Monday she comes in and says Oops! I forgot to tell you that I worked OT last week. Her supervisor concurs.

To pay her the OT pay on Thursday would require we cut her a manual check for payroll outside of ADP, and then enter the pay into ADP the next payroll so it gets recorded for W-2 purposes. That's a pain. But I bet you guys are going to tell me that's what I have to do, although I can reprimand her for not following procedures and take discplinary action if it happens again.

Or, can I tell her to put it on her next week's timesheet and pay her OT then?

Carol


Comments

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  • [font size="1" color="#FF0000"]LAST EDITED ON 07-13-05 AT 07:51AM (CST)[/font][br][br]Well, yes, actually you can. Unless your state specifically requires otherwise, an employer typically takes (care) of the employee's errors of omission on the next subsequent paycheck. You have no obligation to jump through hoops to correct errors you were not aware of. In this state, if the error is the employers, a manual check is typically cut, but there's not a legal requirement here to do that.




    Disclaimer: This message is not intended to offend or attack. It is posted as personal opinion. If you find yourself offended or uncomfortable, email me and let me know why.
  • I agree with Don. If it's the employee's error (not turning in hours, etc.), they have to wait until the next payday to get paid. Usually, they only do this once and then their memory suddenly improves.

    If it's the company's error, I'd say, pay them immediately.
  • I agree with Don. You made payment to her based on the information you had at the time. I have had this happen before and have told the EE that they will get their OT on the next payroll. I do not have a manual check cut becuase it is not something that is all that easy to do. If the EE complains, remind them that the error was theirs and if they record their time correctly, the error would not be made.

    Again, all the above is based on your state law.
  • That's exactly the way we do it. We explain to the employee and everyone has been very understanding, even when the error is ours.
  • We do it that way also - that is correct the payment on the next check.

    By the way, it can work the other direction as well. Hours paid that were not worked can be subsequently corrected - or hours paid as work time that should have been sick or vacation - sometimes they are out of those leave banks thus forcing a pay reduction.
  • We have situations like that happen on a regular basis when payroll closes in certain proximity to a holiday. Employees will receive an email that says to estimate their time for Friday either on Thursday or Friday by noon, and the overages/underages are always corrected the following week. Same procedure for someone who worked unreported OT the previous week. The important thing re the USDOL is to correct the "error" as soon as possible (preferably next paycheck).
  • As long as you correct any mistakes on the next pay period, the DOL will not take issue with it.
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