Is it legal for our employer to change its pay period practice?

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Is it legal for our employer to change its pay period practice?

Our employer has been paying its employees on every second Monday of every month for over 2 years. However, now the employer is now paying on specific dates of each month, As of 01/01, paydays now fall on the 10th and 25th of every month. Pay periods are now are being set combining 2 separate months in this timeframe. This was not the agreed-upon pay period timeframe employees where told when hired. When employees were hired it was agreed upon that pay period would be paid every 2 weeks of every single month, not splitting 2 months for pay periods. Is it legal? Does state labor law allow an employer to set pay periods split into 2 separate months for 1 month’s work period? The employees when hired were told that pay periods would be twice monthly, not split pay period, split into 2 separate months.

Asked on January 10, 2019 under Employment Labor Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

Yes, this is legal. Based on what you write (pay on the 10th and 25th), you are going to be paid twice a month, which meets legal requirement. And it doesn't matter what you "agreed" to, unless that agreement (as to payday) is in a still-in-effect (unexpired) written employment contract for a defined period of time (e.g. a one year, two year, five year, etc. contract). Employers may change any aspect or feature of employment, including pay day, at will except if prevented from doing so by a written contract.


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