Frequency & Manner of Payments
You must pay employees at least once a month. Payday must be within 10 days after the end of the pay period in which the wages were earned.
You may pay your employees by cash or check. If an employee agrees to it, you may pay them via direct deposit. If an employee has access to full wages due at least once per pay period and the employee can choose an alternative method of payment, then you can pay an employee via payroll card.
Payment Upon Separation
If you discharge an employee for any reason, you must pay the employee immediately or within six (6) hours after the start of the accounting department’s next regular workday. If the accounting department is located off site, however, then you must pay the employee within 24 hours after the start of the accounting department’s next regular workday.
If an employee quits or resigns voluntarily, then you must pay the employee by the next regular payday.
If an employee is suspended or resigns due to a labor dispute (like a strike), then you must pay the employee by the next regular payday.
You may only withhold or deduct amounts from an employee’s paycheck if
- required by local, state, or federal law;
- the deduction is for loans, advances, goods or services, or equipment and property provided through a written agreement;
- necessary to cover the replacement of a shortage due to theft by an employee, if a report has been filed with law enforcement;
- any deduction not specifically prohibited that is authorized by the employee; or
- deduction is for the amount of money or value of property that the employee failed to pay or return upon separation from the company.
You cannot deduct the following:
- cash shortages,
- damaged or lost property,
- cost of uniforms or necessary equipment,
- dishonored or bad checks, or
- any similar deductions.
Uniforms & Other Required Equipment or Tools
You cannot require an employee to pay for the cost, maintenance, or cleaning of uniforms or special apparel. However, you may require a security deposit (up to half the actual cost) to ensure the uniform is returned. The cost of reasonable wear and tear cannot be deducted from the employee’s wages or their security deposit.
Pre-Hire Medical, Physical, & Drug Tests
You cannot require an applicant to pay for the cost of any pre-hire examinations or the cost of any records required as a condition of employment, unless the records support the applicant’s statement in their application
Notice of Wage Reduction
There are no laws dictating whether you have to notify an employee about a wage reduction.
You must give each employee a paystub on each payday. It must be in writing and must include:
- gross wages earned,
- all withholdings and deductions,
- net wages earned,
- beginning and ending dates of the pay period,
- employee’s name or social security number, and
- name and address of employer.
For each employee, you must keep the following information for at least two (2) years:
- name, address, social security number, occupation, and date of hire;
- date of birth (if under 18);
- hours worked each day;
- record of allowable credits and declared tips; and
- regular rates of pay, gross wages earned, withholdings, and net wages paid each pay period.
You must post and keep posted conspicuously a notice specifying regular paydays and the time and place of payment, as well as any changes.