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Legal Definitions - current wages

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Definition of current wages

Current wages refers to the compensation an individual has earned or is presently entitled to receive for work performed during a recent or ongoing pay period. This includes salary, hourly pay, commissions, or other forms of remuneration that are due for immediate or near-term payment, distinguishing them from future earnings or wages that have already been paid and settled.

  • Example 1: A retail store employee works 40 hours during a two-week pay cycle. On payday, they receive a direct deposit covering their hourly rate for those 40 hours, minus taxes and deductions.

    Explanation: The amount received in the direct deposit represents the employee's current wages because it is the compensation earned for the work performed during the most recent pay period and is presently due for payment.

  • Example 2: A freelance writer completes a series of articles for a client over the course of a month and submits an invoice for their services at the end of that month.

    Explanation: The payment requested in the invoice constitutes the writer's current wages. It is the compensation earned for the writing services that have just been delivered and are now due for payment according to their agreement.

  • Example 3: An office worker resigns from their job. On their final day, they receive a check that includes payment for all hours worked up to their last shift, along with any accrued but unused paid time off.

    Explanation: The payment for the hours worked until their last shift and the accrued paid time off are considered current wages. These are earnings that were due to the employee for work already performed and benefits accumulated at the time of their departure.

Simple Definition

Current wages refer to compensation for labor or services that is presently due or being earned by an employee. This typically includes earnings from the most recent pay period or work performed in the immediate past, as opposed to future earnings or past due amounts.

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