There is no federal law that sets out how often or in what form employers must pay wages to employees. Almost all states have specific requirements on the timing of paydays and payment upon termination of employment.
According to federal Fair Labor Standards Act (FLSA), a workweek is a period of 168 hours during seven consecutive 24-hour periods. A workweek may begin on any day of the week and at any hour of the day established by the employer. Generally, for purposes of computing minimum wage and overtime, each workweek stands alone, regardless of whether employees are paid on a weekly, biweekly, monthly, or semimonthly basis. Two or more workweeks cannot be averaged.
Virtually all states regulate how frequently employers must pay employees their wages. State laws also specify the length of time that may elapse between the end of the pay period and payday. Employers in some states are required to notify their employees in advance of regularly scheduled paydays.
In addition, some state laws specify when to pay employees who are absent on payday and when the regular payday falls on a holiday.
The Department of Labor (DOL) regulations interpreting the FLSA state that employers must pay their employees in cash or its equivalent (negotiable instrument). Without further guidance, employers should use reasonable judgment when deciding how to pay employees and use the general definition of negotiable instrument.
Keeping track of employee working hours is not an optional chore. The FLSA and numerous other federal and state laws require employers to keep records of hours worked, wages paid, and other conditions of employment. Beyond the law, it is impossible to ...