PERMANENT RULES
LABOR AND INDUSTRIES
Effective Date of Rule: March 1, 2007.
Purpose: WAC 296-126-023, 296-128-035, and 296-131-010, payment interval rules. The purpose of this rule making is to incorporate the payment interval administrative policy into the rules. By integrating the policy into rule and expanding the rule to clarify different payment interval approaches, the payment interval rule will be easier to use, understand, and provide greater certainty and consistency without having to rely on additional documents. The adoption will:
1. Retain the requirement that employers must pay all wages at no longer than monthly intervals on regular pay days.
2. Continue to require an employer to implement a regular payroll system in which wages from up to seven days before pay day may be withheld if paying at a monthly interval.
3. Continue to require that paychecks must be mailed on the established payday and funds provided by direct deposit or electronic means must be available on the established payday.
4. Employers are required to pay wages no later than ten days after the end of the pay period, except for monthly payroll systems.
5. Allow employers to establish separate pay periods for regular and overtime wages plus commission and other specialty pay as long as workers are paid no later than the pay day for the following pay period.
Citation of Existing Rules Affected by this Order: Amending WAC 296-126-023, 296-128-035, and 296-131-010.
Statutory Authority for Adoption: Chapters 49.12, 49.30, and 49.46 RCW.
Adopted under notice filed as WSR 06-17-136 on August 22, 2006.
Changes Other than Editing from Proposed to Adopted Version: The following sections were amended between the proposed and adopted versions (bold and italics indicate change):
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period starting on the 1st day of each month with an established pay day on the last day of the month. In a thirty-one-day month, unless a different payment interval applies by law, the employer must pay wages for work performed between the 1st and 24th days of the month on the established pay day (the last day of the month). The employer may pay wages for work performed between the 25th and 31st days of the current month on the following month's pay day (which means that the employer would pay wages for work performed between the 25th and 31st days of the current month, and the 1st and 24th days of the following month, on the following month's pay day).
If pay period is: | Then payday must be no later than: | And employer must pay wages for at least: |
Monthly, starting on 1st day of the month | Last day of the month | 1st day of the month - 24th day of the month |
Example: Employer establishes two semi-monthly pay
periods. (the The first pay period covers work performed from
the 1st day of the month to the 15th day of the month with the
payday of the 25th; the second pay period covers the 16th day
of the month with the payday of the 10th of the following
month to the last day of the month). The employer pays a base
hourly wage of fifteen dollars per hour, plus a ten percent
commission. An employee works overtime in each of the pay
periods. Unless a different payment interval applies by law,
the employer must pay overtime the base hourly wages no later
than the 25th 10th day of the following month for the overtime
earned during the first pay period, and no later than the 10th
25th day of the following month for the overtime earned during
the second pay period. The employer may pay the additional
commission wages no later than the 10th day of the following
month for commissions earned during the first pay period, and
no later than the 25th day of the following month for
commissions earned during the second pay period.
If pay period is: | And if payday for regular wages is: | Then payday for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(a) All base regular wages (whether paid on an hourly,
salary, commission, piece rate, or other basis) shall be paid
to employees covered by the collective bargaining agreement
("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and
other categories of specialty pay in addition to base pay
regular wages) are paid in accordance with the payment
interval requirements applicable to covered employees under
the terms of, or recognized custom and practice under, the
collective bargaining agreement; and
(c) The employer pays base regular wages to covered
employees at no less than the applicable minimum wage rate.
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period
starting on the 1st day of each month with an established pay
day on the last day of the month. In a thirty-one-day month,
unless a different payment interval applies by law, the
employer must pay wages for work performed between the 1st and
24th days of the month on the established pay day (the last
day of the month). The employer may pay wages for work
performed between the 25th and 31st days of the current month
on the following month's pay day (which means that the
employer would pay wages for work performed between the 25th
and 31st days of the current month, and the 1st and 24th days
of the following month, on the following month's pay day).
If pay period is: | And if payday for regular wages is: | Then payday for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
Example: Employer establishes two semi-monthly pay
periods. (the The first pay period covers work performed from
the 1st day of the month to the 15th day of the month with the
payday of the 25th; the second pay period covers the 16th day
of the month with the payday of the 10th of the following
month to the last day of the month). The employer pays a base
hourly wage of fifteen dollars per hour, plus a ten percent
commission. An employee works overtime in each of the pay
periods. Unless a different payment interval applies by law,
the employer must pay overtime the base hourly wages no later
than the 25th 10th day of the following month for the overtime
earned during the first pay period, and no later than the 10th
25th day of the following month for the overtime earned during
the second pay period. The employer may pay the additional
commission wages no later than the 10th day of the following
month for commissions earned during the first pay period, and
no later than the 25th day of the following month for
commissions earned during the second pay period.
If pay period is: | And if payday for regular wages is: | Then payday for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(a) All base regular wages (whether paid on an hourly,
salary, commission, piece rate, or other basis) shall be paid
to employees covered by the collective bargaining agreement
("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and
other categories of specialty pay in addition to base pay
regular wages) are paid in accordance with the payment
interval requirements applicable to covered employees under
the terms of, or recognized custom and practice under, the
collective bargaining agreement; and
(c) The employer pays base regular wages to covered
employees at no less than the applicable minimum wage rate.
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period starting on the 1st day of each month with an established pay day on the last day of the month. In a thirty-one-day month, unless a different payment interval applies by law, the employer must pay wages for work performed between the 1st and 24th days of the month on the established pay day (the last day of the month). The employer may pay wages for work performed between the 25th and 31st days of the current month on the following month's pay day (which means that the employer would pay wages for work performed between the 25th and 31st days of the current month, and the 1st and 24th days of the following month, on the following month's pay day).
If pay period is: | Then payday must be no later than: | And employer must pay wages for at least: |
Monthly, starting on 1st day of the month | Last day of the month | 1st day of the month - 24th day of the month |
Example: Employer establishes two semi-monthly pay
periods. (the The first pay period covers work performed from
the 1st day of the month to the 15th day of the month with the
payday of the 25th; the second pay period covers the 16th day
of the month with the payday of the 10th of the following
month to the last day of the month). The employer pays a base
hourly wage of fifteen dollars per hour, plus a ten percent
commission. An employee works overtime in each of the pay
periods. Unless a different payment interval applies by law,
the employer must pay overtime the base hourly wages no later
than the 25th 10th day of the following month for the overtime
earned during the first pay period, and no later than the 10th
25th day of the following month for the overtime earned during
the second pay period. The employer may pay the additional
commission wages no later than the 10th day of the following
month for commissions earned during the first pay period, and
no later than the 25th day of the following month for
commissions earned during the second pay period.
If pay period is: | And if payday for regular wages is: | Then payday for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(a) All base regular wages (whether paid on an hourly,
salary, commission, piece rate, or other basis) shall be paid
to employees covered by the collective bargaining agreement
("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and
other categories of specialty pay in addition to base pay
regular wages) are paid in accordance with the payment
interval requirements applicable to covered employees under
the terms of, or recognized custom and practice under, the
collective bargaining agreement; and
(c) The employer pays base regular wages to covered
employees at no less than the applicable minimum wage rate.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 3, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 3, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 3, Repealed 0.
Date Adopted: January 23, 2007.
Judy Schurke
Acting Director
OTS-9090.3
AMENDATORY SECTION(Amending Order 89-16, filed 10/24/89,
effective 11/24/89)
WAC 296-128-035
Payment interval.
((All wages due shall
be paid at no longer than monthly intervals to each employee
on established regular pay days. To facilitate bookkeeping,
an employer may implement a regular payroll system in which
wages from up to seven days before pay day may be withheld
from the pay period covered and included in the next pay
period.)) (1) This rule shall apply to employers and employees
subject to chapter 49.46 RCW.
Note: | Employers and employees not subject to this regulation may still be subject to the payment interval requirements of WAC 296-126-023 or 296-131-010. |
(a) "Monthly interval" means a one-month time period between established pay days.
(b) "Pay day" means a specific day or date established by the employer on which wages are paid for hours worked during a pay period.
(c) "Payment interval" means the amount of time between established pay days. A payment interval may be daily, weekly, bi-weekly, semi-monthly or monthly.
(d) "Pay period" means a defined time frame for which an employee will receive a paycheck. A pay period may be daily, weekly, bi-weekly, semi-monthly or monthly.
(3) An employer shall pay all wages owed to an employee on an established regular pay day at no longer than monthly payment intervals. If federal law provides specific payment interval requirements that are more favorable to an employee than the payment interval requirements provided under this rule, federal law shall apply.
(4) If an employer pays wages on the basis of a pay period that is less than a month, the employer shall establish a regular pay day no later than ten calendar days after the end of the pay period, unless expressly provided otherwise by law.
Example 1: Employer establishes a weekly pay period. The workweek is from Sunday January 1 through Saturday January 7. Unless a different payment interval applies by law, the employer must pay wages no later than January 17.
Example 2: Employer establishes two semi-monthly pay periods (the first pay period covers the 1st day of the month to the 15th day of the month; the second pay period covers the 16th day of the month to the last day of the month). Unless a different payment interval applies by law, the employer must pay wages no later than the 25th day of the current month for the first pay period, and no later than the 10th day of the following month for the second pay period.
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period starting on the 1st day of each month with an established pay day on the last day of the month. In a thirty-one-day month, unless a different payment interval applies by law, the employer must pay wages for work performed between the 1st and 24th days of the month on the established pay day (the last day of the month). The employer may pay wages for work performed between the 25th and 31st days of the current month on the following month's pay day (which means that the employer would pay wages for work performed between the 25th and 31st days of the current month, and the 1st and 24th days of the following month, on the following month's pay day).
If pay period is: | And if pay day for regular wages is: | Then pay day for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
Example: Employer establishes two semi-monthly pay
periods. The first pay period covers work performed from the
1st day of the month to the 15th day of the month with the pay
day of the 25th; the second pay period covers the 16th day of
the month to the last day of the month with the pay day of the
10th of the following month. An employee works overtime in
each of the pay periods. Unless a different payment interval
applies by law, the employer must pay the overtime wages no
later than the 10th day of the following month for the
overtime earned during the first pay period, and no later than
the 25th day of the following month for the overtime earned
during the second pay period.
If pay period is: | And if pay day for regular wages is: | Then pay day for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(8) These rules may be superseded by a collective bargaining agreement negotiated under the National Labor Relations Act, 29 U.S.C. Sec. 151 et seq., the Public Employees' Bargaining Act, RCW 41.56.010 et seq., or the Personnel System Reform Act, RCW 41.80.001 et seq., if the terms of, or recognized custom and practice under, the collective bargaining agreement prescribe specific payment interval requirements for employees covered by the collective bargaining agreement; provided, that:
(a) All regular wages (whether paid on an hourly, salary, commission, piece rate, or other basis) shall be paid to employees covered by the collective bargaining agreement ("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and other categories of specialty pay in addition to regular wages) are paid in accordance with the payment interval requirements applicable to covered employees under the terms of, or recognized custom and practice under, the collective bargaining agreement; and
(c) The employer pays regular wages to covered employees at no less than the applicable minimum wage rate.
[Statutory Authority: RCW 43.22.270, 49.12.020, 49.12.091, 49.12.050, 49.46.020 and 49.46.070. 89-22-016 (Order 89-16), § 296-128-035, filed 10/24/89, effective 11/24/89.]
OTS-9089.3
AMENDATORY SECTION(Amending Order 89-16, filed 10/24/89,
effective 11/24/89)
WAC 296-126-023
Payment interval.
((All wages due shall
be paid at no longer than monthly intervals to each employee
on established regular pay days. To facilitate bookkeeping,
an employer may implement a regular payroll system in which
wages from up to seven days before pay day may be withheld
from the pay period covered and included in the next pay
period.)) (1) This rule shall apply to employers and employees
subject to chapter 49.12 RCW.
Note: | Employers and employees not subject to this regulation may still be subject to the payment interval requirements of WAC 296-128-035 or 296-131-010. |
(a) "Monthly interval" means a one-month time period between established pay days.
(b) "Pay day" means a specific day or date established by the employer on which wages are paid for hours worked during a pay period.
(c) "Payment interval" means the amount of time between established pay days. A payment interval may be daily, weekly, bi-weekly, semi-monthly or monthly.
(d) "Pay period" means a defined time frame for which an employee will receive a paycheck. A pay period may be daily, weekly, bi-weekly, semi-monthly or monthly.
(3) An employer shall pay all wages owed to an employee on an established regular pay day at no longer than monthly payment intervals. If federal law provides specific payment interval requirements that are more favorable to an employee than the payment interval requirements provided under this rule, federal law shall apply.
(4) If an employer pays wages on the basis of a pay period that is less than a month, the employer shall establish a regular pay day no later than ten calendar days after the end of the pay period, unless expressly provided otherwise by law.
Example 1: Employer establishes a weekly pay period. The workweek is from Sunday January 1 through Saturday January 7. Unless a different payment interval applies by law, the employer must pay wages no later than January 17.
Example 2: Employer establishes two semi-monthly pay periods (the first pay period covers the 1st day of the month to the 15th day of the month; the second pay period covers the 16th day of the month to the last day of the month). Unless a different payment interval applies by law, the employer must pay wages no later than the 25th day of the current month for the first pay period, and no later than the 10th day of the following month for the second pay period.
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period starting on the 1st day of each month with an established pay day on the last day of the month. In a thirty-one-day month, unless a different payment interval applies by law, the employer must pay wages for work performed between the 1st and 24th days of the month on the established pay day (the last day of the month). The employer may pay wages for work performed between the 25th and 31st days of the current month on the following month's pay day (which means that the employer would pay wages for work performed between the 25th and 31st days of the current month, and the 1st and 24th days of the following month, on the following month's pay day).
If pay period is: | Then pay day must be no later than: | And employer must pay wages for at least: |
Monthly, starting on 1st day of the month | Last day of the month | 1st day of the month - 24th day of the month |
Example: Employer establishes two semi-monthly pay periods. The first pay period covers work performed from the 1st day of the month to the 15th day of the month with the pay day of the 25th; the second pay period covers the 16th day of the month with the pay day of the 10th of the following month. An employee works overtime in each of the pay periods. Unless a different payment interval applies by law, the employer must pay overtime wages no later than the 10th day of the following month for the overtime earned during the first pay period, and no later than the 25th day of the following month for the overtime earned during the second pay period.
If pay period is: | And if pay day for regular wages is: | Then pay day for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(8) These rules may be superseded by a collective bargaining agreement negotiated under the National Labor Relations Act, 29 U.S.C. Sec. 151 et seq., the Public Employees' Bargaining Act, RCW 41.56.010 et seq., or the Personnel System Reform Act, RCW 41.80.001 et seq., if the terms of, or recognized custom and practice under, the collective bargaining agreement prescribe specific payment interval requirements for employees covered by the collective bargaining agreement; provided, that:
(a) All regular wages (whether paid on an hourly, salary, commission, piece rate, or other basis) shall be paid to employees covered by the collective bargaining agreement ("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and other categories of specialty pay in addition to regular wages) are paid in accordance with the payment interval requirements applicable to covered employees under the terms of, or recognized custom and practice under, the collective bargaining agreement; and
(c) The employer pays regular wages to covered employees at no less than the applicable minimum wage rate.
[Statutory Authority: RCW 43.22.270, 49.12.020, 49.12.091, 49.12.050, 49.46.020 and 49.46.070. 89-22-016 (Order 89-16), § 296-126-023, filed 10/24/89, effective 11/24/89; Order 74-9, § 296-126-023, filed 3/13/74, effective 4/15/74.]
OTS-9091.3
AMENDATORY SECTION(Amending Order 89-15, filed 10/24/89,
effective 11/24/89)
WAC 296-131-010
Payment interval.
((All wages due shall
be paid at no longer than monthly intervals to each employee
on established regular pay days, unless federal law requires
more frequent pay intervals. To facilitate bookkeeping, an
employer may implement a regular payroll system in which wages
from up to seven days before pay day may be withheld from the
pay period covered and included in the next pay period.)) (1)
This rule shall apply to employers and employees engaged in
agricultural labor as defined in RCW 50.04.150 and subject to
WAC 296-131-001.
Note: | Employers and employees not subject to this regulation may still be subject to the payment interval requirements of WAC 296-126-023 or 296-128-035. |
(a) "Monthly interval" means a one-month time period between established pay days.
(b) "Pay day" means a specific day or date established by the employer on which wages are paid for hours worked during a pay period.
(c) "Payment interval" means the amount of time between established pay days. A payment interval may be daily, weekly, bi-weekly, semi-monthly or monthly.
(d) "Pay period" means a defined time frame for which an employee will receive a paycheck. A pay period may be daily, weekly, bi-weekly, semi-monthly or monthly.
(3) An employer shall pay all wages owed to an employee on an established regular pay day at no longer than monthly payment intervals. If federal law provides specific payment interval requirements that are more favorable to an employee than the payment interval requirements provided under this rule, federal law shall apply.
(4) If an employer pays wages on the basis of a pay period that is less than a month, the employer shall establish a regular pay day no later than ten calendar days after the end of the pay period, unless expressly provided otherwise by law.
Example 1: Employer establishes a weekly pay period. The workweek is from Sunday January 1 through Saturday January 7. Unless a different payment interval applies by law, the employer must pay wages no later than January 17.
Example 2: Employer establishes two semi-monthly pay periods (the first pay period covers the 1st day of the month to the 15th day of the month; the second pay period covers the 16th day of the month to the last day of the month). Unless a different payment interval applies by law, the employer must pay wages no later than the 25th day of the current month for the first pay period, and no later than the 10th day of the following month for the second pay period.
(5) If an employer pays wages on the basis of a monthly pay period, the employer may establish a regular payroll system under which wages for work performed by an employee during the last seven days of the monthly pay period may be withheld and included with the wages paid on the pay day for the next pay period.
Example: Employer establishes a monthly pay period starting on the 1st day of each month with an established pay day on the last day of the month. In a thirty-one-day month, unless a different payment interval applies by law, the employer must pay wages for work performed between the 1st and 24th days of the month on the established pay day (the last day of the month). The employer may pay wages for work performed between the 25th and 31st days of the current month on the following month's pay day (which means that the employer would pay wages for work performed between the 25th and 31st days of the current month, and the 1st and 24th days of the following month, on the following month's pay day).
If pay period is: | Then pay day must be no later than: | And employer must pay wages for at least: |
Monthly, starting on 1st day of the month | Last day of the month | 1st day of the month - 24th day of the month |
Example: Employer establishes two semi-monthly pay periods. The first pay period covers work performed from the 1st day of the month to the 15th day of the month with the pay day of the 25th; the second pay period covers the 16th day of the month to the last day of the month with the pay day of the 10th of the following month. An employee works overtime in each of the pay periods. Unless a different payment interval applies by law, the employer must pay overtime wages no later than the 10th day of the following month for the overtime earned during the first pay period, and no later than the 25th day of the following month for the overtime earned during the second pay period.
If pay period is: | And if pay day for regular wages is: | Then pay day for overtime wages must be no later than: |
1st of the month - 15th day of the month | 25th of the month | 10th of the following month |
16th of the month - 30th or 31st of the month | 10th of the following month | 25th of the following month |
(8) These rules may be superseded by a collective bargaining agreement negotiated under the National Labor Relations Act, 29 U.S.C. Sec. 151 et seq., the Public Employees' Bargaining Act, RCW 41.56.010 et seq., or the Personnel System Reform Act, RCW 41.80.001 et seq., if the terms of, or recognized custom and practice under, the collective bargaining agreement prescribe specific payment interval requirements for employees covered by the collective bargaining agreement; provided, that:
(a) All regular wages (whether paid on an hourly, salary, commission, piece rate, or other basis) shall be paid to employees covered by the collective bargaining agreement ("covered employees") at no longer than monthly intervals;
(b) All other wages (including overtime, bonus pay, and other categories of specialty pay in addition to regular wages) are paid in accordance with the payment interval requirements applicable to covered employees under the terms of, or recognized custom and practice under, the collective bargaining agreement; and
(c) The employer pays regular wages to covered employees at no less than the applicable minimum wage rate.
[Statutory Authority: RCW 43.22.270, 1989 c 380 and chapter 49.46 RCW. 89-22-015 (Order 89-15), § 296-131-010, filed 10/24/89, effective 11/24/89.]