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Pay Advances Policy




[Company Name] discourages any advancement of pay not yet earned, and any exception will require an extraordinary or emergency situation. Pay advances are considered a loan to the employee from [Company Name].

Procedure

Any employee in need of a pay advance must submit a request to the department head on the [Company Name] standard check request form. If the department head feels the need is justified, an advance will be approved not to exceed one week's net pay with repayment terms not to exceed three months. General counsel must approve the repayment terms.

Repayment

Repayment terms should be clearly established and indicated on the check request form. Repayment will be automatically deducted from the employee's paycheck according to the schedule agreed upon. Any repayment terms exceeding three months will be considered only in extraordinary circumstances and will be charged interest at 2 percent over the prime rate. Interest will be charged from the day of the advance, and the interest amount will be added to the employee's W-2 at the end of the year.

Eligibility

Employees will be limited to two pay advances per year.

A pay advance will not be granted to an employee who has another [Company Name]-sponsored loan until that loan is satisfied.

Requests that exceed one week's net pay, repayment terms longer than three months or more than one request per year must have the approval of the vice president of human resources and the chief financial officer. 


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