Employees Paid Monthly have Opportunity to Move to Biweekly Pay

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Effective July 1, 2023, State Fiscal Rule 9.3 allows existing employees paid on a monthly basis to select biweekly pay. Additionally, employees new or returning to state employment will be paid on a biweekly basis unless the employee is on a schedule subject to Section 7(k) of the FLSA. These changes are consistent with Article 32.5 of the Partnership Agreement with Colorado WINS.

Biweekly pay is consistent with best practice, simplifies the payroll process, and enables the State to continue to comply with federal timekeeping reporting requirements. It also improves accuracy, reliability, and timeliness of employee pay. As well, employees who receive overtime and shift differential compensation will receive their pay more promptly

Employees’ annual or hourly pay will not change if they choose to move to biweekly. Annual pay will be divided over 26 biweekly pay periods instead of 12 monthly pay periods. Employees will be paid every two weeks. Employees will receive checks two weeks after the end of the pay period. Employees already on a biweekly pay schedule will be unaffected.

It is important to note that, if an employee who is paid monthly and chooses to move to biweekly pay, there will generally be a week delay in their first paycheck, depending on the transition date. Employees who are currently paid biweekly will be unaffected. 

“The State benefits from a modernized process that will improve the efficiency and accuracy of payroll, including reduced processing times and more reliable payroll based on actual time worked,” said Colorado State Controller, Robert Jaros. “This change results in a significantly reduced number of after-the-fact adjustments.”

What does this mean for employees who choose to be paid biweekly?

Employees will continue to earn the same amount. The payment of their annual salary will be done over 26 pay periods rather than the 12 pay periods currently. If employees choose to transition to biweekly play, the transition will cause a delay in employees’ pay, depending on the transition date to move from monthly to biweekly pay. 

Agencies can start offering a transition to biweekly pay to their employees before July 1, 2023. All agencies will need to offer biweekly pay starting July 1, 2023. 

Each agency shall develop a timeline for the time between when an employee submits a request to move to Biweekly Lag Payroll and the time of the beginning of the pay period that the employee will be paid on a Biweekly Lag Payroll Cycle.

Considerations for Determining the Overall and Pay Period Timelines include the following:

  • The agency’s capabilities to administer the requests
  • Staffing and workload considerations
  • Budgetary implications including over expenditures

Each agency’s executive director shall approve the Overall and Pay Period timelines after considering the above-mentioned factors and consulting with the agency controller, budget director, HR director, and labor relations team.

The timeline must be reasonable.

For additional information, please view the Biweekly Pay FAQ's