My Employer Changed Payroll Periods from Semi-Monthly to Biweekly

by Anonymous

My employer paid semi monthly and decided to change to biweekly. Each year at the beginning of the year we sign paperwork stating our annual salary. The year they switched pay periods I was paid exactly what the paperwork I signed agreed to.

The following year I signed new paperwork with my new salary for the new year. Then I was advised that since they paid me my correct salary for the first year, and the last week of the year was paid to me in the following year, they then reduced my annual salary by one week of pay.

The last week of the first year was December 26th through December 31st, which was paid January 9th. My paperwork said my salary for that year was going to be $46,000.00 however they only paid me $45,500 since they felt they paid me too much for the prior year. When I look at my paperwork, 45,000 for year one and 46000 for year two, and they paid me 450000 for year one, and 45,500 for year 2. Can an employer do that? I am exempt - salaried if that makes a difference. The company did this to all exempt/salaried staff. Where can I find a ruling on this subject?

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Labor Disputes
by: Best Business Payroll

Something does seem amiss with how you have been paid--if your contract specifies you should be paid $46,000 for a particular year, your W-2 should reflect that number. Certainly the matter bears looking into further.

We are unsure whether there is a particular IRS ruling on this matter; your best bet would be to contact your local Department of Labor and ask them to do an audit of all exempt employees on your behalf. This way, your privacy will be protected, and all of your co-workers will have this issue addressed. The DOL will be able to ascertain the particulars of your situation and make a definitive ruling--and if it turns out your employer made a mistake, they will need to pay you the difference.

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