Law firm payroll for attorneys and support staff

Distinguish the billing ledger from employee time

Retain approved work records for hourly employees, including work that is not billed to a matter. Keep salary instructions and changes separately identifiable. The responsible adviser determines classification; job titles or billing rates should not decide overtime treatment.

Approve bonuses with their supporting terms

California’s regular-rate rules include qualifying nondiscretionary bonuses. Provide the earning period and approved terms for any productivity or retention payment. Do not ask the payroll processor to infer its treatment from a payment label or from the matter that funded the firm’s operating cash.

Sources: DLSE FAQ - Overtime

Keep employer records ready for later review

EDD requires employers to retain payroll records for at least four years. Organize pay-period approvals, wage details and correction history in the payroll record system. Keep staff compensation records separate from client-fund decisions and limit the payroll handoff to the information needed for the task.

Sources: EDD - California Employer's Guide DE 44 (Rev. 52 (4-26))

Maintain the calendar during trials and absences

Assign a backup approver for busy court weeks. California generally requires wages on designated paydays at least twice a month, with exceptions. Confirm the schedule applicable to each pay arrangement with the firm’s adviser and keep known wages moving when an internal approval is delayed.

Sources: DLSE FAQ - Paydays, pay periods, and the final wages

Sources for firm compensation and record retention

• DLSE FAQ - Overtime
• EDD - California Employer's Guide DE 44 (Rev. 52 (4-26))
• DLSE FAQ - Paydays, pay periods, and the final wages

Law firm accounting support

• Law firm bookkeeping