Payroll laws & compensation compliance analysis

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.
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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 ...

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