California employers must schedule either weekly, biweekly, or semimonthly (minimum two/month) payrolls.  All wages must be paid within seven calendar days following the close of the payroll period. Temporary employees must usually be paid weekly (or daily for daily assignments).

Only salaried exempt-from-overtime employees covered by the Fair Labor Standards Actcan be paid once a month – so long as they receive their entire monthly salary on or before the 26^th day of the month, including the unearned portion between payday and the last day of the month.

Exempt employees must also receive full pay for any workweek in which they perform any work unless they are:

• Unless covered by accrued vacation or paid time off benefit, absent for one or more full days for personal reasons, such as vacation or personal time off;
• Absent for one or more full days for sickness if the deduction is made according to a bona fide sick pay policy and the employee has exhausted paid sick leave;
• On jury duty or military duty for a full workweek and perform no work; or
• Work less than a full week during the first and/or last week of employment.

Policy Drafting Tips:

• Specify the company’s pay schedule;
• Identify the mandatory tax withholdings from employee compensation;
• Instruct employees how to submit changes to their W-4 forms;
• Describe payroll deduction rules for exempt employees; and
• Direct all employees where to voice concerns about wage deductions so that any mistakes can be quickly remedied.

Take-Away:
Implement and regularly review a comprehensive, clearly written handbook to include a paydays and deductions policy.

We publish this series to educate employers on best practices for a well-written handbook that assists applicants, employees, and management alike. To purchase our 2023 template handbook – which contains the above policy and much more – and accompanying forms or for more information, please contact Office Manager Aimee Rosales at 626.583.6600 or email her at officemgr@tbowleslaw.com.

See also:

• Disorder Insurance – Workplace Policy Handbook & Forms for 2023 (March 2, 2023)
• Handbook Helper Episode 20 Overtime Policy – Burning the Midnight Oil (March 9, 2023)
• Handbook Helper Episode 19 Timekeeping Policy – Fourth Dimension Attention It’s in the Cards (February 24, 2023)

Cindy Bamforth
April 18, 2023