What about what I like to call the "fudge factor?" Do you have a means to verify and substantiate suspicions of employee abuse of your timekeeping policies – the early punch ins or the late punch outs – without human (and costly) supervision? Does your current system show employees' clocked hours compared to approved/scheduled hours, over one day or over one or many pay periods? Can you determine at a glance which employees may need a reminder of clocking policies, or would you need a supervisor to spend hours monitoring employees to substantiate the reminder?
The devil is indeed in the details, and the details you should be concerned about are irregular schedules, exceptions to policies, the need for staff intervention in timekeeping, and clocked vs. scheduled hours. So take a look at how closely your current tools and procedures actually match the reality of doing business the way it's done in your own company. If the fit isn't good enough to plug the hole, it's still a hole.
The minimum wage for covered nonexempt employees was raised on 7/24/09 to $7.25/hour. Remember, under FLSA, if time is clocked by a nonexempt employee, it must be paid, and if that time brings the total hours to over 40/week, it must be paid at time and a half. An accurate, automated timekeeping system that is customizable to match your policies and alerts managers to patterns of abuse is the best tool you can have to prevent the clocking of unauthorized hours.
Click below for useful information on potential cash “leaks”.
Coverage Under the Fair Labor Standards Act
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