Are Employees Required to Be Paid on Scheduled Pay Dates?

by Evangeline Marzec, studioD

Companies that have employees must pay wages or salaries, along with taxes, benefits and reimbursements. Payroll laws are complex and are set by the Internal Revenue Service, the US Department of Labor, and the state governments of the employer and employee. Laws specify which parts of compensation must be paid by when, and how frequently are generally set at the state level.

Payroll Components

Payroll refers to the entire amount that an employer must pay to the employee, and to the government or IRS on the employee's behalf. Wages and salaries are only one component of this total compensation. Commission, retirement plan contributions, health insurance premiums, reimbursements for expenses like meals and travel mileage, profit sharing and performance bonuses are also considered part of employee pay. Each has a different set of laws governing distribution of each piece of the compensation package, and not all states have laws that cover all aspects.

Wage Pay Periods

The largest component of most people's paycheck is the base wage or salary. It is the date and frequency of this component of pay that most states regulate. The regulations are often different for exempt employees, who are generally on salary and are exempt from overtime pay laws. For example, in Texas all non-exempt workers must be paid at least twice per month, and exempt employees once a month. All pay periods must be of roughly equal length, but the specific days or dates can be set by the employer. If a payday falls on holidays or weekends, the employer can pay on the following business day. The pay frequency a company elects has an impact on how often it must deposit withholdings to the IRS.


As of July 2011, only five states have no specific payday laws: Alabama, Montana, Nebraska, North Carolina and Pennsylvania. In South Carolina an employer with more than five employees must set and abide by a pay period of their own choosing. Commission-only employees in most states have their own pay frequency regulations.


Failing to pay employees on time and in full is one of the most serious breaches a company can make. Employees have the right to sue within a set period, for example 18 months of a missed payment; the IRS can collect withholdings plus penalties and has no statute of limitations.

About the Author


Photo Credits

Suggest an Article Correction