When must an employee receive retroactive pay?

An employee must receive retroactive pay when there is a delay or error in compensation that affects their earnings, such as a missed raise, unpaid overtime, or adjustments due to changes in wage laws or contract agreements. This pay is typically calculated from the date the payment was originally due until the correction is made. Additionally, retroactive pay may be mandated following labor negotiations or corrections to payroll errors. Employers are legally obligated to ensure employees receive the correct compensation for all hours worked.