California state workers may soon bid farewell to their monthly paydays as the state legislature paves the way for a switch to biweekly paychecks. Tucked within the Assembly’s floor report of the 2023-24 state budget package, Senate Bill 130 grants approval to overhaul the existing Uniform Payroll Cycle and implement a traditional biweekly system.
This change, part of the California State Payroll System project, aims to align the state with the majority of workplaces across the nation. With over 285,000 state employees set to benefit from this shift, it offers them enhanced financial flexibility in navigating family budgets and combating the challenges of inflation.
Biweekly paychecks, already the norm in the private sector, provide a more favorable approach to managing expenses. According to the Bureau of Labor Statistics, over 45% of private establishments issue paychecks twice a month, while less than 5% follow a monthly payment schedule. The number dwindles further for larger organizations, with only 0.9% of establishments with over 1,000 employees adhering to monthly pay cycles.
The California State Payroll System project, an ongoing multiyear endeavor, aims to modernize the state’s human resource management functions, including travel, business expenses, and payroll systems.
By leveraging cloud technology, officials hope to ensure the success of this initiative. While inflation has shown some signs of improvement and certain costs have stabilized, the burden of higher fuel and grocery prices continues to affect state employees. Over a quarter of the workforce resides in Sacramento, experiencing the financial strain firsthand.
With California biweekly pay, employees can better cope with financial stress. Sacramento human resource professional and Sacramento Area Human Resource Association President, Myra Makelim, sees this as a positive change, promoting employee well-being and aligning the state government with private sector practices.
In light of this development, Labor Law Advocates is available to provide assistance and support in case of any issues arising from employers failing to comply with the new payment system. Take charge of your financial future and contact us for guidance today!