Pay Period and Frequency Laws: What Applies to Your Business?

Various labor laws and regulations are in effect across the United States. Some federal laws apply to all states, while specific states have enacted unique legislation related to meal and rest breaks, tipped workers, fair hiring, paid sick leave, scheduling, and more. But employers may not be as familiar with pay period and frequency requirements. This guide digs into the federal regulations in effect, as well as why these requirements are important to employers.

Check out our HR Resource Center to find state-specific pay period and frequency laws in your area.

What Are Pay Period and Frequency Laws?

Pay period and frequency laws dictate how regularly employees must receive payment for work performed during a specific amount of time. Pay frequency refers to how often an employee receives a paycheck. The pay period is the time during which an employee accrues hours to receive payment on the next payday.

Laws around pay period and frequency exist to protect workers from not being paid for the work performed in a consistent manner. But since no federal law dictates frequency or pay periods, states have enacted laws that apply to employers.

Common Pay Periods

Employers are not permitted to pay employees sporadically or alter the pay period regularly. Instead, they must adhere to a pay period schedule. Common options include weekly, bi-weekly, semi-monthly, and monthly.

Weekly pay results in 52 paychecks per year. Employees are paid for the hours during a full workweek. Bi-weekly pay is issued every two weeks, resulting in 26 paychecks per year. A semi-monthly pay period includes two paychecks per month, equaling 24 in a year. Monthly pay is issued once per month, so employees get 12 paychecks per year.

Some states have more complex rules in place, such as requiring employers to issue paychecks to employees after a specific number of days.

Changing Pay Periods

If a change to the pay period does need to be made, an organization must meet certain criteria. First, the change must be permanent and have a legitimate and provable business reason behind it. Employees may not experience delays in receiving payment as a result of the change. Additionally, making a pay period adjustment cannot be used to avoid minimum wage or overtime pay.

If pay frequency is outlined in employment contracts, the legal documents must also be revised to reflect the change. Employees should be informed ahead of time.

Pay Period Laws: Federal

As mentioned, no federal law dictates the pay periods employers use to pay employees. Most of the states have laws in place, which you can review in our HR Resource Center.

Pay Frequency Laws: Federal

As mentioned, no federal law dictates how frequently an employee must be paid. The vast majority of the states have laws in place, which you can review in our HR Laws & Regulations Resource Center. We cover each state’s pay period and frequency laws in detail.

Stay current with labor laws in your state and protect your business. WorkforceHub can help with compliance concerns, offering access to accurate payroll data and integrations with countless payroll platforms. When you ensure that your employees are receiving correct paychecks regularly, you can breathe a sigh of relief.