We were used to pay on saturdays and then today find out we wont get paid till Tuesday. This caused many of my co workers to be in trouble with their bank. Can employers do this legally without advance notice?
2006-10-07 13:32:16 · 7 answers · asked by conniesue 1 in Business & Finance ➔ Other - Business & Finance
it depends where you live. in missouri, employment law says: employers "shall pay the wages and salaries of their employees as often as semimonthly, within sixteen days of the close of each payroll period" but i couldn't find where it addresses changing thd day they post pay. you probably have a state agency that oversees employment law like missouri's wage and hour division. if you can find them listed in your phone book, a quick call could answer your question, and might get the employer into a little trouble.
2006-10-07 14:17:02 · answer #1 · answered by need more 1 · 0⤊ 0⤋
As long as you are paid at least on a bi-monthly basis, changing your pay day without advance notice is legal. The only exception is if you have a contract and the contract requires advanced notice.
The primary reason why companies change the pay days (and they always seem to move the pay days forward...as in your case from Sat to Tue) is because major companies that have a large amount of employees hold their payroll dollars in an interest bearing account or have to move their payroll dollars from an interest bearing account to account that does not draw interest. So basically they are making money by keeping the payroll monies in an account that makes them money.
When I was a District Manager for Pacific Bell (now SBC) the company employed over 10,000 people and we were paid every other Friday. Company policy required that we not cash or deposit our payroll checks until after 3pm. Why? Because the company didn't transfer the money to their payroll account until 3:01 pm on Friday because that bank and most banks post interest only up until 3pm and not during the weekend. And since the company kept their payroll account at the bare minimum until 3:01 pm they were subject to significant overdraft charges if we deposited our checks early. And the payroll for 10,000 people equates to a ton of money they make on keeping the funds in an account that draws interest.
By the way...changing your payday w/o notice is rather low class of your company or any company.
2006-10-07 14:00:51 · answer #2 · answered by iraq51 7 · 0⤊ 0⤋
I think it is very bad business the way they handled this. They should have given prior notice. You all agreed to work for them and get paid a certain day and if the day was changed it should have been in writing.
As far as the bank goes your friends should have made sure the funds were deposited BEFORE spending the money. That is the law. If the funds were automatically deposited from work they may be able to ask the bank to waiver the bounced checks and extra charges.. All they can do is ask
2006-10-07 13:40:07 · answer #3 · answered by The_answer_person 5 · 0⤊ 0⤋
They can change it unless there is a contract that states you get paid on a certain day. The company should have been considerate and gave you advanced warning so you could notify your banks. If there action caused any penalty fees for over drawn checks or late fees , you should get with your other friends who work there and had the same problem and make the company pay those fees. It probably wont happen but you sure could let them know what there actions cost you. It should not be your fault for a bad company act.
2006-10-07 13:50:39 · answer #4 · answered by richard b 3 · 0⤊ 0⤋
My company just changed from paying us on Friday's to Mondays. I work for a company based in NY and they don't do Direct Deposit, so they overnight my check which means I don't get paid until Tuesdays now as well. As far as I know it is legal, as they are doing what they feel is best for the company. It's apparently cheaper to pay on an odd day like a Tuesday.
2006-10-07 13:34:12 · answer #5 · answered by Gayle 3 · 1⤊ 0⤋
NO. The business enterprise does no longer could notify you of the date substitute and if one in all my workers asked me to pay the charges you could guess there days would be numbered. you p.c. direct deposit and you're in charge for the fees. once you found out why did you no longer call your financial business enterprise?
2016-12-26 12:16:00 · answer #6 · answered by ? 3 · 0⤊ 0⤋
it all depends on what the formerly agreed on payday was...if there is nothing in writing, then it is probably legal. But I would as k your state labor board if it is legal or not
2006-10-07 13:36:35 · answer #7 · answered by cabjr1961 4 · 1⤊ 0⤋