Switching pay dates

pvrhr

We are looking at switching from bi-weekly payroll to 1st and 15th. Has any done this, and when do you cut off the pay periods?

moneyman

We actually switched from 15th and EOM to biweekly and we added a one week lag time. We used to pay on the 15th for work up through the 15th. So, not only did we need to get people used to a new schedule, the first check was going to come approximately 3 weeks after their last one. I tried to get it in place at the same time we issued year-end bonuses (which for most people was more than their regular pay), but that did not work out. Instead, we warned the employees a few months in advance and let them exactly when they were getting paid. We also offered an advance to anyone that needed to get through the transition, it was small, $200 and was to be paid off in minimum $25/period increments. Out of 40 employees, we only have 7 take us up on that. We found that with the advance warning, most people were able to make the transition fine.

cthr

You should also check with your State DOL, some have specific requirements as to how frequently you need to pay your employees and require "permission" to change those dates.