Effective Date: June 1, 2009
The purpose of this policy is to standardize the conditions under which an employee may be granted a payroll advance.
A payroll advance may be granted to any regular employee when circumstances defined as unforeseen, unplanned and unavoidable require a staff member to secure funds on short notice and the employee has exhausted all other reasonable sources of financial relief.
An employee may receive no more than two pay advances in a 12 month period.
The amount requested for an advance cannot exceed 50% of the employee’s normal gross base pay for one pay period. The minimum request is $100.00.
Repayments must be made through payroll deductions.
An employee who receives an advance will be required to sign a payroll advance agreement.
The advance pay must be paid in full within 90-days of the advance.
If the employee terminates prior to repayment of the advance, the advance balance due at the time of termination will be deducted from the employee’s final paycheck. This will include using the employee’s accrued annual leave due to settle the advance due if necessary. If the funds are not enough to satisfy the debt the employee will be required to make personal payment in full for the balance, or sign a promissory note for the balance.
If an employee receives a second pay advance within a 12 month period, the employee will be required to attend a credit counseling program at their cost and submit a certificate of completion before any other advances will be available.
To receive an advance the employee must submit a completed Payroll Advance Agreement to his or her Division Executive for approval. In the written request, the employee must provide sufficient detail so that the nature of the situation is clear. Disclosing confidential information is not required.
The signatures of the employee requesting the advance, the division executive (or designee) and the Vice President for Finance and Administration are required on the Payroll Advance Agreement for processing.
An Accounts Payable check will be issued through the Business Office as soon as possible after approved documents are sent to the Payroll Department for processing. The Payroll Department will initiate this process with the Business Office. The check can be picked up by the employee in the Payroll Department or delivered campus mail.
Last updated June 1, 2009