Did you know the Department of Labor can audit your time keeping procedures? Although their main focus will be on proper payment of overtime hours there are less evident issues that can affect employers paying properly.
Often times, an employee will clock in but may not begin their shift immediately. Managers should take note because employees do not need to actually be paid until they begin their work. To avoid this, you can setup your clock to not allow employees to clock in before their work shift begins. However, employers are required to pay for preparation time before or clean up after a job task, such as putting on protective gear or work station setup and cleanup.
Another area of time and attendance to look over is automatic meals setup. It seems obvious, but employees who work through their meal time should not have an automatic meal deduction. If employees are required to take a meal time, the manager needs to enforce this by making them leave their desk or station. However, if a break is not mandatory employees should clock in and out separately for the breaks they do or do not take.
Additionally, companies should reconsider rounding policies. Rounding policies were often used during manual time keeping practices, however since time clock systems generate accurate totals, rounding may no longer be necessary. Why shouldn’t an individual should be paid for all hours worked. If still do choose to use a rounding policy, ensure it is the same for all employees.
Examining your time & attendance policies now will help you avoid fees if the Department of Labor does audit your company. Learn more about the accuracy of Optimum’s Time & Attendance solutions and how our software can track your employees.