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How a Time & Attendance System Helps Organizations Remain FLSA Compliant?

Published: January 17, 2017

Business organizations are bound by a host of rules and regulations implied by the state’s economic and business regulatory authorities to ensure that the industry operates on fair and ethical grounds. These rules and standard criteria come as a prime obligation upon organizations. They ensure that the organization not only adopt a complete profit-making approach, but also credit a fair share of benefits into the account of the workforce.

The US Department of Labor made some modifications in the Fair Labor Standards Act that went into effect on December 1st 2016. The highlight of the revised FLSA policies includes revised salary requisites for exempt and non-exempt employees. Furthermore, the FLSA has bound the organizations into more stringent rules pertaining to overtimes, bonuses, and incentives.

This eventually means that compliance is incessantly becoming an indispensable task and organizations will have to take extra measures to ensure that their workforce management functions stay in complete accordance with the FLSA rules and regulations. A mere flaw or failure to comply with FLSA standards might cause a great setback to the organization, resulting in it suffering from a lawsuit or penalty.

Efficacy of a Time and Attendance System to Ensure FLSA Compliance

A time and attendance system is often perceived as only a time recording system that has automated the otherwise manual procedure of time and attendance recording. As a matter of fact, a time and attendance system offers immense benefits pertaining to time and attendance issues. The FLSA rules and standards primarily depend on the working hours and remunerations. Therefore, it comes as a huge compulsion upon business organizations to maintain a fair and accurate record of an employee’s attendance, working hours, basic wage and overtime hours. This is essential to ensure that the exempt as well as non-exempt employees are remunerated on fair grounds and on a rational basis as per their performance.

The calculation of the monthly wages is a crucial process, especially in case of the non-exempt employees who are eligible to receive extra compensation for each additional hour worked. A time and attendance system helps smoothen the process by taking care of the following processes and functions and eventually, helping business organizations stay compliant with revised FLSA policies.

Accurate Time Records and Hourly Calculations

A time and attendance system maintains a fair, accurate and automated record of attendance, time-in and time-out functions and keeps track of the regular working hours as well as overtimes. This extensive account of each employee’s time and attendance details allows the employees to be paid as per FLSA standards and prevents the companies from suffering penalties and lawsuits.

Wage and Hour Claim Management

Around 90% wage and time miscalculations stem from false and inaccurate data entries. The time and attendance system’s automated data recording algorithms nullify the probability of errors and poor recordings.

Automated Wage Evaluation

A time and attendance system makes it convenient for the organization to automate the system of wage calculation and payroll generation. The system evaluates the wage for exempt and non-exempt employees as per the standard criteria defined by the FLSA.

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