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Employees should receive retroactive pay when there is a change in their pay rate that is applied retroactively, such as a raise that is effective from a previous date. Additionally, retroactive pay may be warranted in cases of payroll errors, where employees were underpaid for hours worked or overtime. It can also occur when an employee is promoted or reclassified to a new position with a higher salary effective from an earlier date. Ensuring timely payment is crucial to maintain trust and compliance with labor laws.

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2mo ago

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