Pay Period

[Knoton]

If a company is set up with direct deposit and pays the 1st and 15th and the first is a Saturday, can they hold the pay until Monday the 3rd? Or in the case of this weekend the 4th due to labor day?

[Eorl]

Todd:

Under Indiana law,(IC 22-2-5-1), wages must be paid within ten business days after the last day of the pay period.  

Most employers need a few days to process payroll, so if they are paying on the 1st and 15th chances are the pay period actually ends around seven to ten days before that.  A smart employer who regularly pays toward the end of the allowable ten day period would normally pay early rather than late when regular payday falls on a weekend or holiday.  But again, the key is when the pay period ends.  That information should be reflected on your pay stubs.

Remember that a business day does not include weekends or holidays, so even if your pay is delayed until next Tuesday, your company would still be within the ten business day limit if your pay period ended on Friday, August 17.

I hope this is helpful.