There’s a alarming number of companies being hit with lawsuits for employee compensation violations. So you’ll want to check-in with Payroll ASAP to make sure your firm won’t be next.
There are several things to watch out for. Violations of state regs in the following areas are most likely to get your company in legal trouble:
- acceptable pay period lengths
- acceptable pay methods
- the timeframe in which employees must be paid
- “wages” that are considered protected, and
- how your company is required to treat vacation pay.
While all types of companies can be affected by this wave of lawsuits, multi-state employers are the most vulnerable. Keeping track of the various pay requirements from several states increases the chance for error by the Payroll department.
Readers, what steps does your Payroll department take to safeguard the company from state pay violations? Share them with us in the Comments section.