Pay Eligibility

BJP

Hi, I work in HR for a company who primarily provides technical personnel to automotive related manufacturers. Would it be unlawful to add a clause into our offer letter stating that the employees hourly wages will not be paid if within the first five days of employment, the employee resigns or is terminated for poor performance. The reasoning for this is difficulty in obtaining payment from the client for the employees services.

HCCADC

You have to pay an employee for the time worked.

Don D

Yes, it would be unlawful. Federal law requires that people be paid an agreed upon amount for hours actually worked. If you cannot collect from your client, I suppose this would fit in the column headed 'cost of doing business'.

nohr4u1yr

They work - you pay.

Is this a problem for your company with people quiting so soon after being hired? Could it be the client(s) they are working for? What are the reasons for them leaving so quickly?

mrbill

Not to pay them would be a loser in a state / federal charge. Your problem is with the client company.

marc

Perhaps you could cut a deal with the contracting company to discount the bill for these rejected EEs to the actual level of pay. If they make it past the first 5 days, then they must pay in full.

Lots of regulations about these "shared" EEs. You have the primary responsibility though, and you would probably lose the client if you did not pay the underlying liability and dragged them into the dispute with the EE via a "cross-claim."

Someone above (i think it was Don) suggested this was a cost of doing business. Perhaps you could build this factor into your upcharge to the client.

System

By now from other posts you know that you must pay, so I won't address that. Maybe you could start another thread and we could help you with recruitment and retention. There must be a reason why you are losing employees soon after they're hired. Another idea would be a 'reimbursement contract' that a candidate signs stating they will reimburse you for the recruitment costs.

Oh, by the way, welcome to the Forum!