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Anonymous
Anonymous asked in Business & FinanceCorporations · 1 month ago

Why would a company with bi-weekly checks pay exempt (salaried) employees for a pay period that extends a week beyond payday?

While the hourly employees are paid for the two weeks prior to payday week?

The only reason I can think of is to further disincentivize salaried employees from quitting, because if their last day is a payday, they will only get half of their check (or owe half of it back) since the second half of it is for the following week of work.

Update:

To be clear, the above description is referring to a salaried employee quitting. Also, they all get paid on the same day, it’s just for different pay periods.

So I ask, why wouldn’t the company just pay salaried employees for the two weeks prior to the payday week like the other employees?

3 Answers

Relevance
  • 1 month ago

    Ask the  paymaster in Human resources.

  • 1 month ago

    Hourly employees can't be paid for period that extends beyond payday because it isn't yet known how many hours they will work in the next week.  Salaried employees get the same pay every time, so the amount to pay them is already known.

  • Anonymous
    1 month ago

    Why do two pay periods exist between salaried and hourly employee's?  Lots of reasons.  Cash flow is a common one.  Maybe the company can't afford to pay all employee's on the same day.

    Your idea doesn't make sense because even if the hourly employee were to quit mid pay period they would be paid for their work (usually) at the end of the pay period. 

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