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My employer switched payroll systems out of the blue 2 weeks before payday. They informed us that they will be withholding a week’s pay back and that we won’t receive it until we leave the company. Is this even legal?
Asked on October 23, 2019 under Employment Labor Law, Illinois
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 1 year ago | Contributor
No, it's not legal. They can't withhold the pay that long--i.e. potentially for years.
If the changeover caused a brief "hiccup," it would be unobjectionable to delay some pay until the next payroll period, when the new system kic kicked in...but that's as long as they can delay it, until the new system has the chance to pay it. What you describe is illegal, and employees should contact the department of labor about filing a complaint.