Odd Employer Pre-Pay Question

**eisor** · 09-14-2007, 12:59 PM

Ok. So, my DH talked to someone in HR who could actually explain what they are talking about.

Apparently, his old company adds 80 hours (your last two weeks pay) onto your first paycheck. The HR lady couldn't explain why. But, they do.

So, no paycheck.

We weren't counting on the money for living expenses b/c DH gets paid with his new job on the 15th (tomorrow). But, it was going to go straight towards debt. Oh well.

**InDebtInDC** · 09-15-2007, 04:47 AM

I think that's great if they did that. Just make sure your first paycheck was actually what they said it was.

If it's true, that was a great company to work for. Most companies pay you for the work you already done, with some slack time built in so you get your money after you've done the work. But with them, they pay you for the work ahead, which when you add in the HR processing time, ends up with money being received right when the work is completed.

I like that idea.

**jodi** · 09-15-2007, 04:52 AM

Does your DH remember getting this chunk of money in his first paycheck? Seems like something like that would stand out.
I don't remember the details, but I think my job withheld money from my first paycheck, instead of adding it. I think I might get a little more back when I leave this job. I've never heard of them paying in advance.

**FrugalFish** · 09-15-2007, 05:52 AM

I agree with the others, look back (hopefully it wasn't too long ago) and make sure he really did get that money. I also have to think that if DH started a job and got paid pretty quickly for a bunch of hours he didn't actually work, that would stand out in my mind. Just make sure you check all your facts. My DH has been taken twice by employers in just the past few years. One was resolved and one he lost about $1000.

**skydivingchic** · 09-15-2007, 06:09 AM

A point that hasn't been raised yet:
Has your DH gotten any raises while he's worked for this company? If so, they are cheating him out of those raises with this scheme. So if he started at $15/hour and over the years is now making $18/hour. In my example those 80 hours on that first check would have been $1200 gross. But if they had paid those hours on the last check, those same hours would have amounted to $1440. He is also being cheated out of any 401(k) matching that is done on a % pay basis, since his base pay would now be greater.

Look for the pay stub from that first check. I would definately have noticed if I'd been paid for 2 weeks extra work in my first check.

**eisor** · 09-17-2007, 08:54 AM

DH and I weren't married at this time and I really didn't have access to his finances. He wasn't always the greatest at managing things, but has gotten much better.

I did go back and look at his pay for his first weeks and he did get paid for the 80 hours. DH probably didn't even notice, as he wasn't too on top of his finances back then.

Originally posted by skydivingchic View Post

A point that hasn't been raised yet:
Has your DH gotten any raises while he's worked for this company? If so, they are cheating him out of those raises with this scheme. So if he started at $15/hour and over the years is now making $18/hour. In my example those 80 hours on that first check would have been $1200 gross. But if they had paid those hours on the last check, those same hours would have amounted to $1440. He is also being cheated out of any 401(k) matching that is done on a % pay basis, since his base pay would now be greater.

This is such a great point! He did receive a raise (although really not that significant). But, I did some math and that is a few extra dollars he should have gotten. I'll have him call HR.

As for the 401k, we haven't gotten that far yet. He never started his 401k with his old company. His new company doesn't match (they do something else...which I plan to ask about in a few days when I get more details) and neither does my current company. We are looking into IRAs instead.

Odd Employer Pre-Pay Question