By: Teena R. Curnow, Supervisor

Proper approval of pay rates is essential in any size entity. Approval of pay rates shows the agreement between the entity and its employees of their rate of pay. The approval of pay rates also communicates to the payroll department the appropriate rate of pay for each employee to ensure they are paid the proper amount.

Pay rates should be approved by the board, represented in the board minutes, and any raises or adjustments should follow the same procedure. The pay rate should be documented in the employee’s personnel file for reference. The documentation of these pay rates should be cross-referenced when payroll is reviewed each pay period to ensure the employees are paid based on their approved rate.