Federal and state wage and labor laws require employers to pay employees promptly, and therefore, withholding a paycheck is not allowed. Employers are legally obligated under the Fair Labor Standards Act to follow certain rules and regulations regarding when employees should be paid, according to About.com. Employers that hold paychecks may be severely penalized for disobeying labor laws.Continue Reading
States decide how soon employees must be paid after the end of a pay period, according to U.S. News and World Report. An employer is not allowed to hold back a paycheck to punish an employee for performance reasons. For example, some employers may think that it is okay not to pay an employee who has not turned in a time sheet. While not having an accurate time sheet is annoying for the employer, the company is still under a legal obligation to pay the worker within the time set by state guidelines. The burden is on the employer to have systems in place to ensure that employees are paid on time.
In addition, there are strict rules concerning a last paycheck. When workers leave a company for any reason, they must be paid in a timely manner that adheres to state guidelines, according to the U.S. Department of Labor. Some states require that last checks be paid immediately. Employers should check state law concerning end of employment payment rules.Learn more about Law
Under the Fair Labor Standards Act, employers can recoup overpaid wages by adjusting the employee's future paychecks without employee authorization, even if the adjustment results in a paycheck less than the minimum wage requirement, according to Lexology. However, laws regarding recoupment of wage overpayment vary from state to state.Full Answer >
Federal laws governing employee terminations cover topics such as health care and unemployment benefits, discrimination and the employee's final paycheck, according to the U.S. Department of Labor. Other areas covered include veterans' reemployment rights, severance pay, layoffs and plant closures.Full Answer >
Minimum wage laws help protect the lower and middle classes against poverty, but they can act as a deterrent against creating new jobs for some potential employers. Business owners will hire employees only if they will generate more money than they cost.Full Answer >
Federal laws apply in every part of the United States, while state laws apply to local areas within a state, explains LawHelp.org. Federal laws typically involve issues such as immigration, bankruptcy, civil rights, patents and copyright, and taxation. State laws, on the other hand, often deal with criminal issues, divorce and other family matters, business contracting, welfare and property. Municipal laws relate to issues such as rents, zoning and safety.Full Answer >