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ISSUE 3
Weekly Pay A few states require weekly pay for certain types of workers. For example, in New York, weekly pay is required for manual workers, or those who spend 25% or more of their work time engaged in physical labor. Bi-weekly Pay This, by and large, is the most popular pay frequency. Pay cycles run for 14- day (two-week) increments, and pay is issued every other week on the same weekday. Every other Friday is a popular choice for employers and employees. The trickier part of a bi-weekly pay frequency is balancing any withholding for benefit plans that are billed or invoiced monthly. It can also make accruals a necessity for the Accounting and Finance Departments because the pay period end dates and actual pay dates rarely fall on the same day that the books close. Several more states say employers must pay at least bi-weekly: Massachusetts and New Hampshire are two examples. Semi-monthly Pay On two designated dates in each calendar month is the schedule of a semi-monthly pay frequency: the 15th and final day of each month. While it may not be the most popular chosen pay frequency, the majority of the states require at least some workers to be paid no less than semi-monthly. In California, most employees are to be paid regular wages no less than twice a month. The state also mandates the
specific pay dates to include in each pay cycle. Wages earned in the first 15 days must be paid by the 26th day of the same month, and wages earned in the second half of the month must be paid by the 10th day of the following month. Monthly Pay In the U.S., school teachers, government employees, and military personnel generally are paid on a monthly cadence. School districts have very specific collective bargaining agreements that dictate how the teachers in the area are paid, including frequency, and these agreements may override the state’s rules, such as in California. Nonprofit organizations under Internal Revenue Code Section 501(c)(3) also regularly pay monthly. In some states, highly-compensated workers and some employees exempted from that state’s payday requirements also are paid monthly. Early and Earned Wage Access (EWA) While not required, many financial institutions are providing employees with funds two days prior to the scheduled payday.
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