To err is human. That’s why, when it comes to tracking employee wage and hour data, an automated time tracking system is the employer’s best choice.
Human beings make mistakes. We forget things. We fudge things. We write things down incorrectly, by oversight or intent. And when a timesheet error becomes a paycheck error, it can result in a labor lawsuit.
In fact, employers paid $400 million in wage and hour settlements in 2014, according to NERA Economic Consulting’s 2015 update. Many of these lawsuits could have been avoided with an automated time and attendance system. These systems are designed protect employers in those areas where they’re most vulnerable to labor law violations, including these.
Automated Time Tracking Prevents Unpaid Overtime
Unpaid overtime is one of the most frequent grounds for wage and hour litigation. It’s simple: if overtime isn’t accurately tracked, qualified employees won’t be paid for it, and that’s a violation. An automated time tracking system ensures OT is accurately recorded.
And when employees earn more than one pay rate, an automated system can ensure blended overtime rate calculations are correct, another common legal pit fall for employers.
In addition, automated time tracking allows employers to review their overtime usage, spot problems, and make scheduling improvements, which can reduce overtime costs as well as risks.
Automated Time Tracking Stops Meal Break Violations
Unpaid meal breaks are another common trigger for labor lawsuits. Employees who skip or shorten their breaks may be shortchanged in their pay. When employees are required to clock in and out for break times, their employers can better manage their break time activities.
Furthermore, some automated time tracking systems flag meal break violations and even issue break rule reminders, helping employees build more compliant habits.
Automated Time Tracking Flags Supervisor Errors
Supervisors do not have unlimited power to change an employee’s timecard or pay rate. But not all supervisors know or heed the rules, which vary from state to state.
While it’s the employer’s responsibility to provide compliance training, an automated time tracking system can ensure the rules are followed. Most systems will flag edits made after the fact, adding transparency and allowing management to ensure their supervisors are compliant.
Automated Time Tracking Creates an Audit Trail
One of the greatest overall advantages of automated time tracking is that provides employers with an accessible, highly credible record of wage and hour history.
It allows employers to quickly access their own records and assemble evidence of compliance. Whether the charge is unpaid overtime, unpaid meal breaks, or another wage and hour violation, solid recordkeeping has deflated many a baseless lawsuit before it got anywhere near a courtroom.
Ask EPAY How We Prevent Wage and Hour Lawsuits
EPAY’s cloud-based time tracking system is the leading choice for employers with a decentralized workforce, who are at greater risk for labor lawsuits because their workers are hard to track. Tell us about your compliance concerns, and ask how our system can help.