Holding paycheck until paperwork turned in

dmartenson · March 2002

[font size="1" color="#FF0000"]LAST EDITED ON 03-06-02 AT 11:04AM (CST)[/font][p]We have an employee who is habitually late turning in his time/expense paperwork. This employee is salary/exempt, however, we use a cost accounting accounting system, so it is important that we have the information to be charged against the projects he works on. This paperwork is supposed to be turned in on a daily basis, (although we let everyone slide now and then due to circumstances). However, reports are generated from this information, and when we do not receive this one "non-compliers" paperwork, it skews the report. His supervisor cannot seem to get this guy to comply (this is another management issue). The employee is usually smart enough to get his paperwork caught up "just in the nick of time" so that his paycheck is not held back. Occasionally he does not turn in his paperwork (which we consider to be part of his job completion)by payday, and we do hold his check until the paperwork is turned in. He is not happy about this, and says that we cannot legally hold his paycheck for work that he has already completed. The Minnesota DOL statute that addresses this issue states that "we must pay an employee within 31 days for the work they have done on a regularly scheduled payroll". We currently pay semi-monthly. We feel that we can "legally" hold his paycheck based on this 31-day law. I would appreciate feedback on how to resolve this issue.

Margaret Morford · March 2002

You definitely need some legal advice. With that said, I think the statute you're citing is addressing the longest payroll cycle you can have as an employer. Essentially, you must pay your employees once per month. I believe that if your payroll cycle is 14 days, you must pay this guy on the 14th day like everyone else. He should be disciplined for not turning his paperwork in timely, but I don't think you can hold his paycheck. You really do need to get this confirmed one way or another because if he calls Wage, you've bought yourself an audit! I wouldn't wi$h that on my wor$t enemy!

Margaret Morford
theHRedge
615-371-8200
[email]mmorford@mleesmith.com[/email]
[url]http://www.thehredge.net[/url]

Dottie · March 2002

It seems to me like the real issue is compliance with company policy. I think the best way to handle this guy would be to start disciplinary measures. He has certainly received verbal warnings -- have they been documented? To me, the next step would be a written warning with the threat of termination. Obviously, the steps taken up to this point have had no effect. Maybe if he realizes his paycheck will walk permanently, he will fall into line.

System · March 2002

[font size="1" color="#FF0000"]LAST EDITED ON 03-07-02 AT 06:02PM (CST)[/font][p]Ditto to Dottie! This is simply misconduct and ineffective supervision. You also should check your state's laws regarding how promptly you have to pay employees.

James Sokolowski
Senior Editor
M. Lee Smith Publishers

Carol CA · March 2002

You wouldn't be able to hold his paycheck in my state of California. You should continue to pay him as usual (especially being exempt you can't "dock" him). However, you need to address the performance issue of not turning in his paperwork in a timely manner. Progressive disciplinary action should get his attention.

Roberta · March 2002

Is there any chance you could add a note to those reports? I am thinking of something such as "Report should not be considered complete due to lack of documentation from (name of slacker)." Of course, your wording may be more diplomatic than that. I concur that this a supervision issue.

dmartenson · May 2002

An update on this "paperwork problem" employee - when finally, seriously, confronted with the fact that he was so far behind in his time sheets and submission of documentation for corporate credit card charges, he decided that he did not want to work from us anymore, and walked off the job. Subsequently we have discovered numerous "personal" items purchased, including furniture and books on magic and sorcery.

The "manager" in question has confided in me that he has "really learned a lesson" from this. And going forward he will not allow any of the employees he supervises to disregard company policy without progressive disciplinary measures, no matter how valuable they are to the company.

Downside - we lost some bucks from inappropriate charges. Upside - A Manager has learned why company policy is important to uphold - and understands it is his job to make it happen.

Carol CA · May 2002

Thanks for the update. It's always nice finding out the result of situations posted.

Holding paycheck until paperwork turned in

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