Although I discussed the topic of payroll frequency in a previous post there is a new law effective 1/1/14 in Rhode Island which is worth mentioning as I have many clients and friends in RI.
Rhode Island requires employees must be paid weekly, unless their compensation is fixed at a biweekly, semimonthly, monthly, or yearly rate. In other words, hourly employees must be paid weekly, however salaried employees may be paid at less frequent periods.
Effective January 1, 2014,
employers may petition the Director of the Department of Labor and Training to pay wages less often than weekly. In writing, they must show “good and sufficient reason” why they should be permitted to pay their employees bi-weekly, rather than weekly. The employer must agree to pay wages on a pre-designated date no less than twice per month, and it must provide the Director with proof of a surety bond or some other form of security in the amount of the highest bi-weekly payroll exposure in the preceding year.
Until now, the law allowed only the State, cities and towns, nonprofit and certain large employers to pay their employees less often than weekly.
If you have questions on your companies specific payroll, or how to petition the state, don’t hesitate to contact me for a FREE REVIEW of your policies and procedures.