Can my employer hold back a week’s pay after years of working here… is that allowed?

I’ve been at my job for a few years, and now my employer just decided to hold back a week’s pay for everyone. When I started, they told me they didn’t do this, and now, after all this time, they’re suddenly changing it. They’ve given us some notice that it’ll start in a few months, but this is going to hit hard. I’ve heard they need permission to make pay changes like this, but I’m not sure what the rules are in New Hampshire. Is this even allowed?

It sounds like they’re switching everyone to an arrears system. This is pretty common for employers who want more time to process payroll accurately.

Most companies try to make this switch easier on people by spreading out the change across a few pay periods instead of all at once.

@Reese
Yeah, that’s exactly what they’re doing. But they’re not offering any gradual transition, just an immediate switch one week in December. They told us to ‘plan for it,’ but a lot of us live paycheck to paycheck. A heads-up only helps so much.

@Foster
Sorry to hear they’re not making it gradual. It’s tough, especially around the holidays. Employers know it’s a strain, and usually, they’re more considerate about it. Maybe they could at least spread it over a couple of pay periods instead.

Yeah, they can do this legally, but they’re really making it hard by not easing people into it. They could shift it one day at a time over seven pay periods to make it easier on everyone.

Leith said:
Yeah, they can do this legally, but they’re really making it hard by not easing people into it. They could shift it one day at a time over seven pay periods to make it easier on everyone.

That sounds like a good plan. Currently, our week goes from Wednesday to Tuesday, and payday is Friday. Would it still work if we kept Friday as the payday?

@Foster
I’ve seen places do it by pushing payday one day later each period until it syncs up with the new schedule. They switched because processing everything the same day as the pay period ended was a nightmare for payroll staff. They finally got a full week to handle it, which helped catch missed hours, etc.

@Leith
Last year, they did something similar with those on commission. They held back commission pay, but not hourly, since commission took longer to process. They claimed computers being down was the reason it didn’t go through once, but it really should have been done earlier… :woman_shrugging:

Yes, they can change the timing, but they’ll likely need approval from the DOL. So long as it’s still weekly pay, it should get approved.

Edit: They can change the payday as long as it falls within eight days after the pay period ends and they give everyone notice.

@Zen
Right, they said they’re just holding back a week, not changing the weekly schedule. This company never did that when I started, but now we’re all going to miss a full week of pay soon.

Foster said:
@Zen
Right, they said they’re just holding back a week, not changing the weekly schedule. This company never did that when I started, but now we’re all going to miss a full week of pay soon.

Got it, yes, that’s legal.

@Zen
Another thing; someone missed submitting payroll this week, so we didn’t get paid. They’re promising payments will come by the end of today, but it just feels like a mess. And holding back a week wouldn’t have stopped this from happening.

@Zen
I think they mean to keep the weekly schedule but delay the payday.

@Zen
They didn’t even ask permission yet. At first, they wanted it to start this week because payroll didn’t go through, which upset everyone. Now they’re delaying it to ‘avoid this issue,’ but holding back a week wouldn’t have changed what happened.

@Foster
Sounds like they’re struggling with cash flow and payroll issues. If they’re not careful, this place might not last long. Time to start looking for a new job just in case.

Reagan said:
@Foster
Sounds like they’re struggling with cash flow and payroll issues. If they’re not careful, this place might not last long. Time to start looking for a new job just in case.

Yeah, I had the same thought. They said the payroll mishap was because someone forgot to submit it, which I figured was the case. I usually get paid a day early with my bank, and when it didn’t hit, a few others were concerned, too. All they were told was ‘it went in on time,’ but if that was true, it would’ve shown up.

@Foster
If they’re telling different stories to different people, that’s a red flag. And now they want to make the delay permanent without planning ahead? I’d suggest prioritizing job applications. Maybe take a sick day and use it to apply elsewhere.