What You Can Do to Protect Your Company against a Costly Labor Lawsuit
The Government Accountability Office published a study to determine the success of the Fair Labor Standards Act. They found that over the last decade there has been a significant increase in the number of civil lawsuits filed claiming labor violations. And during the 2013-2014 year, FLSA cases increased by 5 percent—a record high for federal wage and hour lawsuits1.
How does this data impact your business?
With labor lawsuit numbers at an all time high, it’s more important than ever that you take the necessary steps to protect your business against wage and hour violations.
5 Tips to Prevent Labor Lawsuits
- Keep Accurate Records: Maintain weekly records. Although your pay schedule may run biweekly or monthly, having time and attendance records that are as current as possible is especially important.
- Stay Current With Relevant Legislation: Wage and hour laws differ from state to state and are subject to change. Keeping up with current legislation in all states that your company does business in, ensures that when changes occur, you can adjust accordingly. The Department of Labor website is a great resource to stay up to date on labor laws in your state and throughout the country.
- Perform Regular Job and Payroll Processing Audits: Participating in regular audits will allow you to check that each employee has been properly classified and is being paid for every hour worked. Having reviews of job functions and pay practices helps ensure necessary changes are made as soon as possible.
- Determine Proper Employee Classification: Classifying employees as exempt or non-exempt will assist with FLSA compliance. Here are some best practices for correctly classifying your employees.
- Train Managers and Educate Employees: Training managers in compliance will help to ensure they are keeping accurate records and can answer FLSA and company policy questions. Include company compliance policies in employee training.
How EPAY Systems Can Help You Prevent Labor Lawsuits
EPAY Systems offers a cloud based time and attendance system that can conform to the unique needs of your business. Our BlueforceTM system offers streamlined payroll processing that integrates automated timesheets with payroll, HR and ERP systems, helping you keep accurate records. Blueforce can also assist with compliance and labor lawsuit risk protection with tight controls on time card changes and built-in compliance safeguards. Contact us to learn more.
Want more tips to help you stay compliant? Download the report, 10 Steps to Preventing Labor Lawsuits.