Beginning July 1, OTC is updating our payroll system. Pay periods will now be calculated from mid-month to mid-month, so you’ll be paid for the weeks worked in a given month rather than one-twelfth of your annual salary. This changeover will in no way affect how much you get paid annually or your benefits. However, the size of your paychecks will be different depending on whether a given month has four or five weeks. While the total hours you’ll be paid for each year will match up exactly with your employment agreement, you’ll have to plan for the four months when your checks will be larger than the other eight months.

Over the next month, OTC will work to align the two systems. You will receive your normal pay period check for the pay period of June 1-30 on June 30. Your next paycheck, calculated under the new system’s pay period of June 19-July 16, will go through July 29.

Who does the payroll update affect?

The change in pay-periods will only affect full-time, non-exempt employees. If you currently work 40 hours a week and record those hours on a time sheet, you fall into this category.

How will the payroll update benefit me?

The big advantage is you’ll be paid for the total hours worked per month, so you’ll never be delayed overtime pay from the month you work it. Currently, all full-time, hourly employees on a 12-month employment agreement get paid one-twelfth of their pay at the end of each month, and any overtime is not paid until the next month’s pay. The new system solves this problem by always timely compensating employees for the time they’ve worked.

How will the payroll update change the size of my paychecks?

Currently, all full-time employees are paid for 173.33 hours each month. After the update, since some months have five weeks and others just four weeks, all 12 of your paychecks will not be for the same amount. Most months you will be paid for 160 hours, but some months you’ll be paid for 200 hours.

As you can see from the calculation below, your annual pay is not changing.


Current system:

173.33 hours x 12 months = 2,080 hours

Payroll Updates:

160 hours x 8 months = 1280 hours


200 hours x 4 months = 800 hours

Total hours = 2,080 hours

The total hours you’ll be paid for each year match up exactly, but you’ll have to plan for the four months when your checks will be larger than the other eight months.

How does the overlap in old and new time periods affect my pay?

In order to minimize the impact this changeover will have on full-time, non-exempt employees, you will receive your normal pay on June 30 for the June 1-30 pay period under the old system and your first pay under the new system on July 29 for the June 19-July 16 time period. As you can see, you’ll be getting paid twice for nine days— June 20-24 and June 27-30. OTC will “advance” that overlapping pay and then will recover it gradually over the next nine months by subtracting eight hours of pay from each pay in order to allow employees to transition to the new system with ease.

How will the payroll update change pay periods?

Non-exempt payroll periods will change to a mid-month to mid-month term with paychecks distributed at the end of the month. Below is a schedule of pay periods and check distribution dates for the coming fiscal year. This will help you plan for the four months when your pay will be larger than the other eight months.

6/19/2016 7/16/2016 7/29/2016 4
7/17/2016 8/20/2016 8/31/2016 5
8/21/2016 9/17/2016 9/30/2016 4
9/18/2016 10/15/2016 10/31/2016 4
10/16/2016 11/12/2016 11/30/2016 4
11/13/2016 12/10/2016 TBD 4
12/11/2016 1/14/2017 1/31/2017 5
1/15/2017 2/11/2017 2/28/2017 4
2/12/2017 3/18/2017 3/31/2017 5
3/19/2017 4/15/2017 4/28/2017 4
4/16/2017 5/13/2017 5/31/2017 4
5/14/2017 6/17/2017 6/30/2017 5
6/18/2017 7/15/2017 7/31/2017 4

What if I have more questions?

If you have more questions, we understand! While switching to the new system will compensate you in a more timely manner for the hard hours you’ve worked, the adjustments of the changeover are complex. We encourage you to come to an informational session, so we can answer all your questions and make the transition as smooth as possible.