How To Avoid Time Tracking Compliance Errors

How To Avoid Time Tracking Compliance Errors

You’d like to think that all of your employees are honest. Unfortunately, some 43% of workers are guilty of company theft. If you put that together with hour and wage litigation being on the rise, it’s more important now than ever that your company practice accurate employee time tracking. Time tracking compliance is an essential part of running a reputable business.

No one wants an hour and wage lawsuit. Neither does anyone wish for a DOL (Department of Labor) intervention. Let’s see what the most common errors leading to either of those are, and how to avoid them.

Retrieval of Timecards

What happens if you have to be audited by the DOL? For one thing, it never seems like they give you enough time to get together your records. Here’s a helpful hint: make sure that your records are easily accessible and date back at least four years. If you can’t find/provide the records the DOL wants, it’s the same as not having the records at all. With an automated attendance and time system, the task of gathering records can be completed in a matter of minutes. In addition, any changes that were made to timecards will automatically be noted, thereby providing the employer with proper justification.

Less Than Proper Editing Of Timecards

If an employee misses a clocking-in or clocking-out opportunity, they usually have to have their timecard edited by a supervisor. It ends up being the employer’s word against an employee’s word if a dispute arises regarding timecard editing. With a labor-management system that requires notes to be made if an employer edits an employee’s card, if called into question, the reasons for the edits can be justified more easily.

Are Your Employees Working Off the Clock?

All businesses must comply by the overtime rules set up by the FLSA (Fair Labor Standards Act) and the federal government. Here are couple of examples of employees working during nonworking hours and (possibly) not getting paid for them:

  • Taking work home to work on it there
  • Staying late to perform work
  • Coming in early to do work

But by having an exceedingly clear attendance and time policy, problems can be avoided. Employees must accurately either report hours worked outside the facility or clock in and out accurately. No ands, ifs, or buts.

Auto Launch Deductions

For as much as one hour or, more typically 30 minutes, numerous small businesses deduct (automatically) a “lunch break” from the hours that an employee works. But if an employee works through their break (doesn’t take a lunch break), and it’s deducted automatically, big problems can arise. And if they worked through lunch, but they see that 30 minutes deducted anyways, what’s going to happen?

They should be paid for their time, in the eyes of the employee and the DOL. Automated attendance and time systems allow a business to track whether or not a worker is actually working through lunch.

Rounding Time Worked by Employees Incorrectly

Most businesses think nothing of rounding out the daily hours worked by employees. It can be accomplished by rounding “out” and “in” punches on a timecard, or by rounding the total hours worked. There is automated attendance and time software in existence that can perform this process flawlessly. Both employee and employer can equally benefit from the neutral rounding system employed by such software. This system is also DOL accepted.

By keeping the above in mind, businesses can avoid costly, unproductive, and unpleasant hour and wage disputes. Hiring an outside payroll provider is an ideal manner in which to handle all your payroll solutions.

TRAXPayroll has time tracking solutions and more for your large, medium, or small business.