After working at a job for four years as a salaried employee, my employer has offered direct deposit. He says he has to hold a weeks pay in arrears to give time to adjust deposits for those who leave the job. Is this allowed in Alabama?
I couldn't find an exact law addressing this but I would assume it is allowed based on my employment in other states in the US.
Furthermore, it is definitively allowed for government employees, based off of this document from the Alabama comptroller which states
Q: Is this something new – being paid in arrears? I’ve never heard of this.
A: No, it is not new. Employees are paid now on a biweekly, in arrears basis. The only timing change is to go to semi-monthly pay per iods and checks since most employees have been paid in arrears for years. We are trying to be careful to distinguish semi-monthly arrears rather than just saying semi-monthly pay because there are some employees who are paid on a semi-monthly current basis now and will continue to be paid in this manner.