By Gabriel Reilly
There may be situations in your business that may lead you consider skipping a payroll. These can range from cash-flow problems to even having accounting staff on vacation.
State wage payment laws have very significant penalties. Employers should always consider alternative sources of cash or deferment of other expenses, rather than missing a payroll.
You may have even considered getting a waiver or consent from an employee agreeing to waive earned wages. Except for exempt employees who have a significant, actual ownership interest in the business (not stock options or unvested equity), employees cannot lawfully waive their right to timely payment of wages — they must be paid in full for all earned wages even if employees agree that they are willing to defer or forego some or all of what they have earned.
We can help you avoid these situations.