Liskow attorney Ellie George was recently featured in New Orleans CityBusiness’ Guest Perspective section with her article, “2026 Brings 27-Paycheck Challenge for Employers.” The article examines an uncommon payroll issue employers may face in 2026, when the biweekly payroll calendar results in a 27th paycheck and creates budgeting, compliance, and employee communication considerations.
In the article, Ellie explains how the extra pay period occurs and outlines the practical implications for employers that have budgeted for only 26 pay periods. She discusses the financial impact of issuing an additional paycheck, as well as alternative approaches such as spreading annual salaries across 27 pay periods, noting potential wage-and-hour and overtime exemption risks under the Fair Labor Standards Act.
The article concludes by emphasizing that while a 27-paycheck year can create challenges related to payroll costs, overtime compliance, and benefits administration, the issue is manageable with proactive planning. With that in mind, Ellie highlights the importance of reviewing payroll calendars early, coordinating with benefits administrators and counsel, and clearly communicating with employees to avoid confusion and compliance issues.
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