Say you are an employer who only after careful consideration of job duties and a salary-basis test would exempt an employee from FLSA requirements. A few years down the road Ahkello Witherspoon Jersey , the Department of Labor (DOL) audits your organization and finds that they disagree with your interpretation for exemptions. Due to the complex nature of the FLSA, this is a perfectly plausible scenario. The law is so ripe to multiple interpretations that a recent case on FLSA classification went to the Supreme Court. In another recent case Reuben Foster Jersey , the DOL settled with First Republic Bank for over $1 million for misclassifying 392 employees.
The trend is becoming that even employers with the best due diligence and honest intentions are being tripped up. Now is the time to hedge against the worst-case scenario of being charged with FLSA violations, and to do so is relatively easy.
If you are like the majority of organizations Solomon Thomas Jersey , there are both exempt and non-exempt workers on your payroll, but with your time and attendance software you only record the hours worked for the non-exempt Dante Pettis Jersey , “hourly” employees. This is the decision that will haunt you if the worst-case scenario comes to fruition. The DOL will need to determine how many hours each employee worked each week, and then you will have to properly compensate them their annual rate Mike McGlinchey Jersey , plus overtime for hours worked over 40 in a week. Your organization does not have these records, so that means it will be your word against the employees’ word. The employees almost always have the final say.
Establishing a company-wide practice of all employees clocking in upon arrival and clocking out upon departure will allow you to provide the DOL with the accurate time records they request. It will then be much more difficult for employees to retroactively pad their time worked.
Most organizations balk at company-wide timekeeping because they think this means having salaried workers “punch the clock” each day. This is not the case with today’s time and attendance software technology. Time entries can be captured upon arrival by simply integrating your timekeeping system with your security system. Another option is seamlessly capturing time entries when they log in and out of their computer (as done with the TC-1 Log Clock).
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