The information posted on PayrollTalk is for informational purposes only and is not intended to substitute for obtaining accounting, payroll, tax, or financial advice from a professional accountant.

Pay increase not processed

In April 2019 a Non-Exempt Employee was told a rate increase was being submitted for approval and processing. The raise was never processed. The company did not catch this. The employee did not notice this either. The employee resigned October, 2019. Now the former employee realizes this was missed and is asking if this this error can be corrected and she get paid the difference?


  • Hello ashleycontroller
    Welcome to the board. This is a really useful place so please do not be put off by my snarky answer.

    It is not clear what your question is.

    If you are asking if the error can be corrected and she can get paid the difference, the answer is "yes".

    If the question is whether the company should do that, the answer may be a bit more complicated. I guess I am not sure what you mean by "approval" and whether the employee had reason to believe the raise was promised. The fact that "the company did not catch this" suggests that the raise was intended and some where in the processing someone screwed up. Either that or it was not approved for some reason and nobody told her.

    It is also not clear which state is involved. State wage and hour laws may come into play - timely payment for example. Depending on the amount, it may be cost effective to just pay her regardless of the circumstances and hope she doesn't file a wage complaint. It may be even more complicated if there is overtime compensation involved.
    In this context, another consideration is that the labor laws are intended to be remedial and that there is a presumption that the employer is in a greater position of control over the situation than the employee.

    I suppose the hypothetical question on our end - that you don't have to answer - is whether there some reason to believe that she should not be paid.