There is no problem under the federal Fair Labor Standards Act, but state laws often regulate how often employees must be paid. In many states, nonexempt personnel generally must be paid no less frequently than biweekly or semimonthly. The company can not switch to monthly pay in those states unless an exception is authorized.

For most employees, the FLSA requires calculation of overtime on a weekly basis. However, it does not require that overtime be paid weekly. The general rule is that overtime for a particular workweek must be paid on the regular payday for that period. Paydays may cover periods longer than a week, whether two weeks, half a month or a whole month.

In the states, the most common legal standard for the frequency of paydays is at least twice a month. Some require at least monthly pay, while a couple of jurisdictions generally require weekly pay but allow employers to seek exceptions. New York requires weekly pay for manual workers, except as authorized for large, responsible employers.

Executive, administrative and professional employees often can be paid monthly, rather than biweekly or semimonthly. The same also may be true for employees who are on commission.

Many state laws also spell out how much time may pass between the end of a pay period and the payday for that period. Usual intervals are between a week and 15 days, but there are some shorter and some longer. Many states require notice to workers about their pay periods, including some states that do not control frequency of pay. Check the law of your state for precise requirements.