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Scheduled Pay Day is a Holiday - HELP

Catbert22Catbert22 16 Posts
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When our scheduled pay date falls on a Federal Holiday, we have historically changed the pay date to the next business day. For example, I have a scheduled pay date for Thanksgiving Day, but we plan to pay on Friday. One of my employees directed me to the Industrial Commision of Arizona's website ([url]www.ica.state.az.us/faqs/labor/wage_payment_laws.html#[/url]) where the answer to a FAQ indicates that we must pay on or before the holiday. I called the ICA and neither of two agents could tell me what state or federal law that answer is based upon. They eventually sent me to the director's voice mail. I've searched the US DOL and Arizona Revised Status websites and came up with nothing. Does anyone know if there is a federal or Arizona law that stipulates that I must pay on or before a holiday?
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  • Dutch2Dutch2 1,590 Posts
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    Sorry... can't help with any Arizona or Federal regulations. We pay every other Friday and our policy has been for as long as I can remember, if the payday falls on a holiday we pay the preceeding day.
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  • NaeNae55NaeNae55 3,243 Posts
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    We also pay the preceding day.

    I am sure paying late upsets many employees and can cause morale issues. If your government website says you must pay early, then I wouldn't wait around trying to find the exact code. Your employees will be able to use the website as an authoritative source and you might find yourselves on the wrong end of a lawsuit.

    Good luck!

    Nae
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  • sonnysonny 2,117 Posts
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    We also pay day early..
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  • ritaanzritaanz 2,665 Posts
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    Cat, Thursday is Thanksgiving. Can you really ask your employees to wait an extra day for their checks? Many people, expecially in these trying times, live from pay check to pay check.

    Forget about searching for a way to delay payday. Start the holiday season with a hearty "Happy Thanksgining" as you hand out pay checks on Wednesday.
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  • stilldazedstilldazed 640 Posts
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    We happen to pay a day early, but we're in Florida. There is no federal law that would require you to pay a day early, so it must be state specific. Is your employer a public employer, or is there a collective bargaining contract?


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  • Catbert22Catbert22 16 Posts
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    No, we're privately held, no collective bargaining contract. I spoke with the Director at the Industrial Commission of Arizona last yesterday afternoon. He also said he couldn't explain why their website states we must pay on or before a holiday. He also did not know of a Federal or Arizona law that stipulates such. He assumes that's the way Arizona Statute 23-351 was interpreted, which states "Each employer in this state shall designate two or more days in each month, not more than sixteen days apart, as fixed paydays for payment of wages to the employees..... Each employer shall, on each of the regular paydays, pay to the employees, in lawful money of the United States...all wages due the employees up to such date..." So, they way I see it, if the payroll schedule that we set at the beginning of each year moves holiday payrolls to the next banking day, we're fine to do that. I'm not saying I agree that we do that, but I choose my battles with the Bosses. Thanks for all your input!


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  • ritaanzritaanz 2,665 Posts
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    Why should this parrticular incident be a battle? The good will that you will generate far out weights the battle scars.
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  • NaeNae55NaeNae55 3,243 Posts
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    "..... Each employer shall, on each of the regular paydays, pay to the employees, in lawful money of the United States...all wages due the employees up to such date..." So, they way I see it, if the payroll schedule that we set at the beginning of each year moves holiday payrolls to the next banking day, we're fine to do that."

    That is not the way I interpret it. I read it that the employee must be paid by that day. If you pay after because you close on that holiday, that is your choice. Even if it is a legal holiday, your organization made the choice to call it a paid holiday and not have employees come in to pick up their paychecks. Remember, courts always interpret the law to the advantage of the employee.

    Good luck!

    Nae
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  • Cheryl S SPHRCheryl S SPHR 238 Posts
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    I'm not familiar with AZ regs, and don't know of a federal reg that requires early payment.

    Our practice is to pay on the 25th. If the 25th is a Saturday, Sunday, or holiday, we pay early. I agree with the others that it would be a nice thing to do for your employees, regardless of what the regs say.

    Cheryl
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  • ACU FrankACU Frank 2,188 Posts
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    We pay a day later. Because we're a financial institution, our employees have a very good understanding of how it all works. They know that if they have their check on direct deposit with an account here, it makes no real difference.
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  • drehildrehil 207 Posts
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    We are also a financial institution with direct deposit for our employees. We pay the day before. One day can make a difference for those living pay check to pay check.
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  • Nevada HRNevada HR 274 Posts
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    We also pay the day before. We're government.
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