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Pay Day Changes Due to Holidays

Caryl DillonCaryl Dillon 1 Post
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In this day of electronic banking, can an employer change "pay day" as the result of a holiday; payroll usually phoned in on Monday, however due to holiday - Tuesday. Therefore, changing payday from Wednesday to Thursday. I remember reading somewhere in HR resource documentation that in Feb 03 a law was passed preventing this sort of hardship due to electronic banking needs. Please clarify.......
Thanks
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  • 5 Comments sorted by Votes Date Added
  • karenmckarenmc 63 Posts
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    Rather than change to pay date I always offer the employees a live check as opposed to direct deposit. That way on Wednesday they are free to deposit their check as usual. I have very few take me up on this offer because for the most part the banks still credit the direct deposit on Wednesday am.
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  • dynamite9551dynamite9551 113 Posts
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    most companies process payroll a day earlier than usual when the processing day falls on a holiday - however, when a holiday fall on the PAYDAY - again most companies pay their employees a day early - eg. holiday on monday, payday prevous friday. i'm not sure what the electronic banking has to do with anything (unless you're referring to the ACH transfer) this usually requires 48 hours from processing until the tapes are delivered to bank for distribution.

    is there some reason you couldn't call in your payroll on Friday? to avoid changing the pay date?


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  • dchr9203dchr9203 431 Posts
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    In 20 years of HR/payroll experience, the company has paid the day before the holiday if the payday fell on the holiday.
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  • Dutch2Dutch2 1,590 Posts
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    Same here. If payday is a holiday, we pay the day before.
    Dutch2
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  • E WartE Wart 719 Posts
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    I think you have an issue that needs to be addressed with payroll provider.
    We never change the dates of our checks, even if it is 12/25. However, we do change the dates of transmission to our payroll provider depending upon when a holiday might be. We transmit on Monday, receive checks back on Tues. and send them out to our plants that day. Our actual payday is Friday, but we hand them out on Thursday and they are dated Thursday. This means that if we do it on Tuesday instead of Monday, there is a chance some of our employees checks are not deposited on Thursday, but should be there by Friday. This is something we tell them they need to work out with their bank. If you tell them ahead of time, it doesn't seem to be a problem. You could transmit on Friday if you wanted to. I think suspending all employees deposits is a little strong. Some folks may want theirs to go no matter what date they go in.
    E Wart
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