Reference no: EM132702689

Problem - The Payroll Department of DuMont has a policy of waiting one full week before correcting any paycheck errors of $30 or less. However, any pay shortages that exceed $30 are made up the same day. Also, any amounts less than $30 are made up the same day when the particular circumstances of the employees indicate that it would place an undue hardship on them to wait until the next pay one week later.

Denise Harris, an order checker in DuMont's Shipping Department, discovered an error of $28.34 in her weekly check. When Harris reported the error, a payroll clerk informed her that she would have to wait until the next week's paycheck to recover the amount, since the underpayment was less than $30.

What is your reaction to DuMont's policy of providing for paycheck corrections? Assume that Harris protests the delay and in court argues that her earned wages should be paid on the date due. As the judge hearing the case, how would you decide?