Results 1 to 6 of 6
  1. #1
    Join Date
    Dec 2011
    Posts
    2

    Post State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    My question involves employment and labor law for the state of: Indiana
    Are Indiana's laws concerning pro-rating a salaried employee's final week of pay the same as Federal laws? A friend and former co-worker recently left her salaried position with the company I work for, and received, from the general manager, an email that stated she would be paid her final 2-week's wage, plus accrued unused vacation time. When she received her paycheck, she realized she'd been paid a pro rata amount for the final week. She questioned the deduction and was told "Wage and hour laws address the first week and the last week of a salaried employee specifically to enable employers to prorate those weeks." Information available on the US Department of Labor's website does, indeed, say "deductions from pay are allowed...in the employee's initial or terminal week of employment if the employee does not work the full week". However, elsewhere on the website, it states: "When the state laws differ from the federal FLSA, an employer must comply with the standard most protective to employees." I've searched the Indiana Department of Labor website, though, and haven't found any information that specifically addresses this issue. Thanks, in advance, for your time and assistance.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    If your friend believes that there is an Indiana statute that would entitle her to pay for days she did not work, post-resignation, she can look for them here. I don't see anything that would suggest any such windfall is forthcoming.

  3. #3
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    To the best of my knowledge, only one state requires that an exempt (or non-exempt, for that matter) employee be paid beyond last day the employee actually works; that state is not Indiana; even in that one state the requirement only exists in limited circumstances.

    Unless she can find an Indiana state statute that says otherwise, and I do not believe there is one, the employer is legal paying her only to the last day of employment.

  4. #4
    Join Date
    Dec 2011
    Posts
    2

    Default Re: State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    Thanks for the information. I don't agree with the law, as it's written, but I realize that doesn't change it. Personally, if I made an agreement with someone that entailed paying them a set wage at specified intervals for work done whether they worked every day or not, I would feel morally obligated to hold to my end of that agreement throughout their employment. Unlike my employer, I believe my word is one of the most valuable things I own, and, therefore, don't give it lightly.

    There were some weeks during which this lady worked double shifts, others when she worked all 7 days, but she didn't expect (or receive) any additional compensation, because that was what she'd agreed to. The employer was perfectly willing to stick to the letter of the agreement during those weeks, but because Federal law allowed them to break their word during her final week of employment, they opted to take advantage of that loophole and withhold wages the general manager had already agreed to pay. Perfectly legal? Yes. Morally right? Not to anyone with a conscience.

  5. #5
    Join Date
    Sep 2011
    Location
    OH10
    Posts
    17,019

    Default Re: State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    They held to the agreement throughout her employment. It was only after she quit they stopped paying her.

  6. #6
    Join Date
    Jun 2006
    Location
    Massachusetts
    Posts
    24,521

    Default Re: State vs. Federal Rules for Prorating Salaried Employees' Final Pay

    You can be as self-righteous as you choose, but the fact remains that few if any employers are going to pay any employee beyond the last day they actually worked. I very much doubt that there was any agreement in place that she would be paid after she is no longer employed.

    1. Sponsored Links
       

Similar Threads

  1. Compensation and Overtime: Salaried Employees and Holiday Hours
    By MR.CHEEZ-IT in forum Employment and Labor
    Replies: 4
    Last Post: 10-29-2011, 08:32 AM
  2. Compensation and Overtime: Salaried Employees and Compensation
    By lisaNJSalaryEE in forum Employment and Labor
    Replies: 3
    Last Post: 09-11-2011, 09:06 AM
  3. State Contempt for Following Federal IRS Rules
    By Annie70 in forum Child Custody, Support and Visitation
    Replies: 9
    Last Post: 04-20-2011, 05:02 PM
  4. Compensation and Overtime: Paid Time Off for Salaried Employees
    By pattybaker in forum Employment and Labor
    Replies: 2
    Last Post: 04-17-2011, 10:21 AM
  5. Compensation and Overtime: Can Salaried, Exempt Employees Be Docked Pay
    By NMROA in forum Employment and Labor
    Replies: 1
    Last Post: 08-19-2010, 01:14 PM
 
 
Sponsored Links

Legal Help, Information and Resources