Payday is the day your employees are paid for the work done during the previous pay period. It’s the day they get their paycheck.
How often should I pay my employees?
The typical payroll frequencies in the US are:
- Bi-weekly (every other week);
- Semi-monthly (twice a month); and
Am I required to use one payday frequency over another?
Federal law (per the Fair Labor Standards Act (FLSA)), does not specify a particular payday frequency to be used.
Under individual state laws however, there are many regulations regarding payday frequency. For example in:
- Arizona, payday must occur on two or more days in a month, and those days cannot be more than 16 days apart;
- California and Michigan, the frequency of payday depends on the occupation of the employee; and
- Alabama and South Carolina, there are no regulations around the length of pay periods.
Before setting a pay schedule, it’s important to verify all laws that might apply in your jurisdiction. For a full rundown of all state pay schedule laws, visit this US Department of Labor page.