How to calculated unpaid wage waiting time period for salary employee
Salaried employee: for purposes of determining the waiting time, is one month’s salary the same as 30 days’ wages?
No, one month’s salary does not equate to 30-days wages. A salaried employee working five days per week will on average work 21.6 days per month (52 weeks/year ÷ 12 months/year x 5 days/week) in earning his or her full salary. However, since the waiting time penalty is calculated using a daily rate of pay, and can be up to 30 days’ wages, the maximum penalty will always exceed a person’s monthly salary. For example, assume that the maximum penalty of 30 days’ wages is appropriate for a salaried employee who was making $2,500.00 per month at the time the employment relationship ended. In such a situation, the penalty would be $3,461.54, computed as follows:
$2,500.00/month x 12 months/year = $30,000.00/year
$30,000.00/year ÷ 52 weeks/year = $576.92/week
$576.92 ÷ 5 days/week = $115.38/day (daily rate of pay)
$115.38/day x 30 days = $3,461.54 (waiting time penalty)
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