There is no question that the average day of an HR professional is filled to the brim with tasks. There is a constant flow of paperwork. Employees are always popping in with questions. There are unforeseen interruptions that take minutes to hours out of the day.
With all of this on your plate, are you making sure that all of your responsibilities are handled correctly? One of the things that you might be missing is ensuring that your company is not in violation of Federal wage law.
The implications of not paying attention to these laws are serious and far-reaching. Lawsuits, negative impact on company culture, and a knock to your reputation are all possible. There are also financial implications of not complying with these laws. Fines of hundreds of thousands of dollars or even jail time is not unusual.
So, as an HR professional, are you sure that you are taking the necessary steps to avoid this? If you aren’t, the time to start is right now.
An Overview of Wage and Hour Compliance
Let’s start with the basics. You probably know this information, but it’s always a good idea to refresh your mind when it comes to these laws. The government agency that handles wage laws in the US is the Department of Labor. This group watches employers and makes sure that they comply with the Fair Labor Standards Act.
This law covers minimum wage, employer record-keeping, overtime pay, and even youth labor. As an employer, you have to make sure that you are following these rules. For example, you must pay your employees a minimum of $7.25 per hour, as long as the position is covered under this law.
You are also required to pay overtime, for more than 40 hours of work in a week, for covered positions. This is at least one and a half time the employee’s regular pay rate.
The other part of the FLSA is the record keeping aspect. In this case, employers are required to display these laws in the workplace. Additionally, employers are responsible for keeping certain records. These include the following:
· Name and occupation
· Social Security Number
· Hours worked each day and each week
· Rate of pay
· Overtime earnings
· Bonus earnings
· Additions and deductions
· Date of pay and dates of pay period
Additionally, employers are required to keep these records on site for three years.
Most employers do not have an issue with the pay aspect of the FLSA, but when it comes to record keeping, it is very easy to neglect it. So, you must have a system in place to eliminate these violations. One of the best is automated time-keeping.
The Benefits of Automated Time-Keeping to Avoid Federal Wage and Hour Violations
In the world of HR, any type of task automation is welcomed. This technology makes your working life easier, and this is only one benefit of many. Additionally, of course, it also helps you to avoid any Federal wage and hour violations. How? All of the information you need is right there at your fingertips. Here are other benefits:
One of the main benefits of automated time-keeping is that the HR office will become more productive. You won’t have to waste time tracking down employees. You don’t have to worry about creating new records, nor will you have to calculate work time manually.
Another benefit of this technology is that you will make fewer errors. As you know, it is easy to make mistakes with paperwork, especially in an HR office. How many times have you been completing paperwork when someone walks in? After dealing with the interruption, you have certainly had to retrace your steps a bit to remember where you were with your own work.
This is the perfect environment for errors. With HR software, however, you won’t have to worry about this as the system does it for you.
Since these systems are all automated, there is virtually no paperwork to speak of. Wouldn’t you love an office with less paper? We all would, of course, and with these systems, you can get it.
Employee Benefits of Automated Time-Keeping
Yes, there are benefits to you with automated time-keeping systems, but there are also benefits to employees. For instance, employees will be less likely to have to waste their time coming to the HR office for questions.
These timecard changes will also become empowered to manage their own time at work. They can see when they are eligible for overtime. They can also see if they have a pattern of being late. You will also notice a more positive company culture as employees will feel as if they have a more powerful role within the company.
As you can see, choosing automated time-keeping systems is an excellent way to improve the workplace dynamics. This is true for both the HR staff and the employees you work with. Most importantly, these systems help you to avoid any violations of federal law. These simple timecard changes benefit everyone.
Yes, they are an investment. However, considering the time you will save at work and the hundreds of thousands of dollars in fines you might face, the cost is well worth it.