Is it legal to pay commision employees on a payroll lag?
Country relating to Question: United States
State (if USA): Florida
Thank you for your question today, I look forward to assisting you. I bring nearly 20 years of legal experience in various disciplines.It is legal to pay any employee on a payroll lag, to allow time for processing. There is no law against commissioned employees being part of that sort of system, neither in Federal law or Florida state law.
Employment/Labor Law Litigation
Is there a limit on how many days the lag can be set for? Is there a designated amount of notice time required to innitiate lag pay?
Not in Florida. Some states do, but Florida does not. It just have to have some reasonable basis in fact. By that I mean, there is no reasonable basis in fact to say that you need to lag pay for three months for processing.Lagging an entire pay period is acceptable (two weeks, 15 days approximately). More than that and the employer would have to have a good explanation for needing that much lag.
My company currently holds operations in Florida, Alabama, Tennessee, South Carolina, Missouri, and Texas. Any of these states present an issue for setting up lag pay?
I very much appreciate your answers.
I will have to individually research each of those states. I was able to answer Florida so quickly because I do a lot of work there.It will take me a little time, but I'll address each state.
Alabama has no laws on the issue, so you can lag pay.Tennessee only states that you must pay twice monthly. It makes no mention about whether or not lag pay is an issue, meaning that it is permissible (employers can do as they wish, unless prohibited).South Carolina simply states that employees must be paid in the manner and at the time the employer says they will do so. So, if you clearly explain to the employees the commission lag, then you can pay in that fashion.Texas is similarly to TN in this regard. Twice a month, but there is not mention about lag. If the employer makes it clear that that is the manner of pay, Texas will allow it.Missouri is the only one that might be problematic. They require payment of wages earned within 16 days of the close of the payroll periods. So, that is the most lag you could have in your payroll in that state.
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