A wage statement order must include what?

A wage statement order must include what?

• A. Penalties only
• B. Only principal
• C. Interest only
• D. Interest and unpaid compensation paid in one lump sum

Answer: (D)

When wages are unpaid, the wage statement order is meant to compensate the employee not just for the money owed but also for the time value of that money. The order must specify the total unpaid wages owed and the interest that has accrued on those wages, and it should require that these amounts be paid together in a single lump-sum payment. This ensures the employee receives both the principal and the interest at once, finalizing the claim in one payment. Penalties alone wouldn’t cover the owed wages or the interest; principal alone would omit the interest; interest only would omit the actual wages due. Thus, including both interest and unpaid compensation in one lump sum is the correct approach.

When wages are unpaid, the wage statement order is meant to compensate the employee not just for the money owed but also for the time value of that money. The order must specify the total unpaid wages owed and the interest that has accrued on those wages, and it should require that these amounts be paid together in a single lump-sum payment. This ensures the employee receives both the principal and the interest at once, finalizing the claim in one payment. Penalties alone wouldn’t cover the owed wages or the interest; principal alone would omit the interest; interest only would omit the actual wages due. Thus, including both interest and unpaid compensation in one lump sum is the correct approach.