Are school districts required to establish a delayed payroll system?
Yes. The USFR requires districts to establish a delayed payroll system as a matter of good business practice, and the Arizona Constitution, Article 9, Section 7, prohibits paying wages (extending credit) to any individual for hours not yet worked. Districts should establish a lag that allows adequate time between the end of the pay period and the payment of wages to ensure that employees are paid only the wages they have earned. A.R.S. 23-351 allows school districts to establish a lag time of up to 2 weeks.
