SALARY ADVANCES - 8595

Agencies/departments may only issue salary advance checks to employees for salary earned when:

• Errors or delays in submitting or processing documents making it impossible for the State Controller's Office (SCO) to prepare and deliver proper salary warrants within a reasonable time, or
• Separating employees are in immediate need of their final salary payments. See Labor Code section 202(a).

Agencies/departments at their discretion may make payments of salaries earned when this is necessary to alleviate serious, unforeseeable hardship. Agencies/departments will prepare criteria for advances, including the procedures that must be followed before advances are given. The specific reason for the advance must be written on the request.

Salary advances shall be issued for amounts as close as possible to the actual net pay. Upon receipt of the SCO warrant for the full salary payment, agencies/departments shall pay the difference between the employee's warrant and the salary advance. Refer to SAM section 8160 for endorsement of SCO warrants.

If the SCO warrant is not received by the agency/department within 30 calendar days following the issuance of the revolving fund advance, the agency/department must report the amount of the advance, compute withholdings on the advance, and remit to the SCO.