Posted on November 17, 2010

Do the words “wage and hour audit” stress you out?

The Department of Labor has greatly increased its focus on wage and hour compliance. Paycor’s Time on Demand (ToD) makes it easy to track employee time and attendance data, protecting you from costly compliance infractions. Here are tips from attorney Jeffrey Shoskin of Frost Brown Todd, LLC and Paycor’s Dona Canaan on how you can increase your preparedness for an investigation.

Resolve Lunch Deduction Issues – Many employers build a 30-minute “automatic lunch deduction” into their employee time data. If an employee claims that he has regularly worked through lunch, the burden is on you to prove that he has not. With ToD, employees can clock in and out at lunchtime, even from their own PCs. Actual times are recorded and easily retrieved in the event of an investigation.

Address Issue of Employees Routinely Clocking In Early – ToD software allows recording of the actual time an employee clocked in, but for payroll purposes start time is automatically rounded to the beginning of the scheduled work day. This prevents employees from inadvertently being paid overtime for those pre- and post-workday minutes.

More Accurately Track Overtime – The Department of Labor counts anything over 40 hours in a single work week (and in some states more than 8 hours in a day) as overtime – not 80 hours in a two-week pay period. ToD allows managers to easily see when each employee is approaching 40 hours, and automatically applies the correct pay rate to overtime hours, be it daily, weekly, consecutive day, weekend or premium overtime. Calculation of overtime pay may be complicated by bonuses and commissions that are received during a pay period; ToD provides easy access to data so employers can make these calculations.

Track Paid Time Off (PTO) for Exempt Employees – ToD has options for tracking both worked and non-worked hours for exempt employees. This gives managers an accurate account of time worked on particular projects, and helps the employer to ensure that their PTO policy is being consistently applied for all employees. Requests for vacation or other time off can be made directly through ToD, and routed to the appropriate managers for approval.

Save Money by Eliminating Buddy Punching – The ToD system can be implemented using biometric hand readers that make it impossible for one employee to punch another in to work. Use of biometric readers increases payroll accuracy and productivity, and improves legal compliance.

To Learn More:
To schedule a one-on-one demonstration of how Time on Demand can help prepare you for a wage and hour investigation, contact Dona Canaan at dcanaan@paycor.com or 513.338.5821.