Draw Pay Law & Legal Definition

Draw pay is an advance of money held, usually referring to money that has been earned but not payable until a predefined pay date.

The following is an example of one employer's draw pay policy:

Draw Pay

Employees may receive a payroll draw, up to a maximum determined by resolution of the Board of County Commissioners, if the following conditions have been met:

• Written notification must be presented to the Payroll Clerk in the Auditor’s Office by the 10th day of the month. The draw request will remain in effect until the employee submits a written notice to discontinue the draw.
• The employee has worked sufficient hours to be entitled to the draw pay.

NOTE: Public Works allows a draw pay not to exceed forty (40) percent of each employee’s average monthly pay rate.

All adjustments to the amount of the draw pay must be authorized by the employee on an appropriate form. In the instance of a promotion, position change, longevity increase or general salary adjustment, the employee shall be notified of the salary change and be given the opportunity to execute a new authorization form.

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