Common use of Timely Payment of Wages Clause in Contracts

Timely Payment of Wages. A. The State agrees to provide for all active employees, timely payment of regular wages due on pay day. In addition, following an employee’s discharge, layoff, or resignation the employee shall be compensated for wages due consistent with applicable department and Controller’s Office policies. B. Effective upon ratification of this Agreement by the Legislature, when a permanent full time employee receives no pay warrant on payday, the State agrees to issue a salary advance, consistent with departmental policy and under the following conditions: 1. When there are errors or delays in processing the payroll documents and the employee does not receive a check on pay day, a salary advance of at least 50% of salary owed (approved time) will normally be issued within three (3) work days after pay day for an amount close to the actual net pay (gross salary less deductions) in accordance with departmental policy. 2. Upon Caltrans movement to a monthly pay cycle: When there are errors or delays in processing the payroll documents and the employee through no fault of the employee does not receive a check on pay day, a salary advance will be issued for an amount close to the actual net pay (gross salary less deductions) and will be issued within three (3) work days after payday. 3. In the event that a revolving fund check is not issued within three (3) workdays as specified above, the employer will pay to the employee five percent (5%) of the employee’s base pay for that pay period, for each work day beyond the three-day grace period described in (1) above. 4. The differences between the employee’s net pay and the salary advance shall not be reconciled until after the Department receives the Controller’s warrant for the pay period. C. Those employees on voluntary payroll deduction who experience extended problems receiving payroll warrants may request that an explanation be provided to payroll deduction creditor(s) by their departmental personnel office. D. This provision does not apply to those employees who are on non-industrial disability insurance leave, industrial disability leave, or who are receiving worker’s compensation payments. E. Upon specific request of IUOE, the State will meet with IUOE regarding specific departmental issues of timely issuance of overtime payments, shift differentials, premium pay, or allowances. F. Upon request of the Union, any State agency shall meet with IUOE to evaluate its distribution of regular salary warrants. Any alternative method of distribution shall be in accordance with State Administrative Manual sections 8580.1 and 8580.