Payroll: What you need to know

The Fair Labor Standards Act (FLSA), also known as the Wage and Hour Law, regulates minimum wage, overtime, equal pay, recordkeeping, and child labor for employees of enterprises engaged in interstate or foreign commerce and employees of state and local governments. It has implications to payroll, such as paychecks, withholding allowances, taxes, payment practices, and recordkeeping. This section is intended to give a general description of these issues. Employers should seek professional advice on complicated matters.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
There is no federal law that sets out how often or in what form employers must pay wages to employees. However, most states address these issues.
Timing of paydays. 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.
Payment upon termination. Most states also specify when employers must pay employees who leave the company. The statutes often distinguish between voluntary and involuntary termination. Under the most common provision, employees who are fired or laid off must be paid just after termination; employees who resign must wait until the next regular payday. However, some state laws provide that employees who give their employers sufficient advance notice of their intention to resign are entitled to receive their pay on their final day of work.
Some states require that, in addition to wages, employers pay ...

>> Read more about Payroll

More on this topic:

Payroll Resources

Payroll Products

Compensation.BLR.com will help you price jobs competitively and comply with FLSA and wage and hour laws in your state. Get reliable salary data in seconds, along with the answers to complex state overtime compliance questions in one easy to use website. Get a VIP tour - call 1 800 454-0404"
Payroll Webinar Recording
BLR Webinar: "Payroll: How to Legally Handle Tax Levies and Garnishments""
IRS and ICE Audit Alert Webinar Recording
BLR Webinar: "IRS and ICE Audit Alert: How to Avoid and Manage Payroll and Recordkeeping Scrutiny""
Weather-Related Absenteeism Webinar Recording
BLR Webinar: "Weather-Related Absenteeism: Policies, Payroll Adjustments, Telecommuting, and More""
Payroll Taxes Webinar Recording
BLR Webinar: "Payroll Taxes: What You Need To Know About W-2s, Per Diems, Fringe Benefits, and More for 2011""
Free Special Reports
Get Your FREE HR Management Special Report. Download Any One Of These FREE Special Reports, Instantly!
Featured Special Report
Claim Your Free Copy of Critical HR Recordkeeping

Record retention is complex and time consuming. However, in addition to complying with various federal and state laws, keeping good, well-organized records can be very helpful in documenting and supporting an organization’s employment actions.
Download Now!

This special report will discuss how you can ensure your records are in good order, and establish a record-retention policy.

Topics covered:
1. Hiring Records
2. Employment Relationships
3. Termination Records
4. Litigation Issues
5. Electronic Information Issues
6. Tips for Better Recordkeeping
7. A List of Legal Requirements

Make sure you have the information you need to know to keep your records in order.