Payroll Advance

sobekneferu

Does anyone have a payroll advance policy that acts as a deterrant? We're already changing our policy so that the Executive Director has to approve all advances (previously everyone had been giving the advances to the "nice" deputy director), but we also want to stem the tide a bit. We don't want to get rid of the option all together, but we do want to limit it to folks who truly do have an emergency.

Parabeagle

We have a policy of absolutely no advances for any reason other than travel required by the company. Then we will advance per diem and mileage, but not wages. It may be a little harsh, but it has virtually eliminated all requests for advances.

Leslie

Employees are only eligible for a payroll advance once per quarter for a maximum of 40 hours (we are paid biweekly). The first pay period of each quarter there's a slew of regulars (always in financial trouble with a need to get their hands on their cash as soon as possible) - the rest of the way it settles down with emergency situations.

Not perfect but it's better than out of control.

Hunter1

Agree with Parabeagle - no advances for any reason. I haven't had to deal with even a request for years.

JudyRoy

I agree with the other, we have a "no advance" rule and we don't even have employees asking anymore. It is written in the handbook and there are no exceptions. We do have a sick leave sell back twice a year, so if employees need extra cash, they can cash in their sick leave. Of course that means they have to come to work everyday and not call out.

jimlegal

Agree with other post. No advances for any reason. Prevents alot of potential problems.

Pork

Our PAYROLL ADVANCE system is strictly limited to the General Manager and he is very reluctant to jump on board with an advance. The PAYROLL ADVANCE is unpublished and infact we strictly publish that, we are not a bank and do not provide interest free loans. Given that some employee gets "burned out oh his home and needs help", we will energize the employee contribution and gifts of clothing, etc. The GM will then also approve a "Payroll Advance" with a reasonable 6 week pay back system, which is accomplished quietly and inserted into the money gifts that come into the employee. That way the employee is helped by the other employees, plus he is allowed to also help himself with cash that he/she would not otherwise have or be entitled too.

Sorry i don't have any written program to give you and I also do not encourage you nor your company to publish one unless you are in fact a banking company.

Pork

Zanne

[font size="1" color="#FF0000"]LAST EDITED ON 04-29-03 AT 10:49AM (CST)[/font][p]"No payroll advances" works best.

I used to work for a small hospital where the Monday after payday, we'd have 10 or 15 people lined up for payroll advances. It seems they routinely took the bus over to Oklahoma with their payroll checks and lost them playing Bingo.

Seems like you would only do this once, but it was a biweekly event.

Anyway - I'm of the opinion that you should make a "No advances" policy and then if necessary (employee burned out of house, etc.) quietly have it approved by the President/etc. and give it to the employee.

By the way - we are a bank and we don't believe in advances.

Zanne

cebudragonlady

We used to do advances, but the last employee who got one - took it upon himself to play one owner off against the other when it came time to pay the company back. The older owner got mad, and has forbidden any advances for anyone - period. The employee was read the riot act, made to pay the whole advance back at one time, in addition to being told that he had ruined it for everyone. Since, then this employee has cashed out most of his vacation in the last few weeks...

Chari

sobekneferu

Thanks, everyone, for the feedback. I work for a social service agency that can sometimes be a little too soft on employees in the policy department. I personally think that you need some budget counseling if you can't even make it paycheck to paycheck. I'm going to recommend getting rid of any policy. Someone who really needs help will make the step to go to a supervisor - but we'll get rid of "automatic" requests from our payroll advance all-stars!

Leslie

We have a bi-weekly payroll, and our advances are as I stated above. We have an entity with 200 employees who went to a weekly payroll to get rid of all the requests. Pretty drastic measures I thought.