Payments of Wage Act

The Payments of Wages Act, which is also known as the Payment of Wages Act is a legal structure that has been enacted in many jurisdictions to govern the payments of employees salaries by their employers. The act determines the principles of employer-employee relations regarding wage payments including the date, manner, schedule and amount of wages. Its purpose is to see that employees receive on time and full payment for their work and guard them against unjust wage practices and offer methods of settling disputes that relate to wage payment.

Example of Payments of Wage Act

The Fair Labor Standards Act (FLSA) in the US comes with provisions for minimum wage, overtime pay and record keeping in relation to employees. Under the FLSA, employers must pay at least the federal minimum wage to all their covered workers for all their regular hours and provide overtime pay at a rate of one and a half times the regular rate for hours worked after 40 in a workweek.

In addition to federal laws, various states may have their own Wages and Payments Acts or Wage Payment Laws through which states set out extra conditions for employers on wage payments. For example, some states require employers to pay daily wages on specific dates, usually weekly, biweekly, or semimonthly, and provide employees with written statements that disclose their earnings, deductions, and pay period dates.

Employers are bound by the provisions of the Payments of Wages Act so that they can evade legal liability, penalties, and possible lawsuits due to wage violation. Non-compliance with wage payment rules, like withholding wages, making unauthorized deductions, or delaying payments, can lead to penalties, back wages owed to the employee and/or the employer's reputation will be damaged.