Time Tracking and Labor Law Compliance
FLSA Compliance, Overtime Rules,
California Overtime Rules, FMLA Compliance
| Each year many companies are audited by the Department of Labor (DOL). In a recent study, 15 percent of all companies reported being audited one time, and 5 percent between two and five times. Fines from audits can be large. In 2004, companies had to pay $197 million in fines for back pay. These audits are caused by complaints filed by current or former employees.
To be FLSA compliant a time tracking system must:
- Provide detailed and accurate time keeping records of employee hours worked
- Accurately record weekly regular or straight-time hours
- Accurately record weekly overtime hours which are in excess of 40 hours per week
- Accurately calculate overtime pay using "regular rate of pay" formulas
- Time keeping records must be kept for two years: timesheets and piece work data
- Any additions to or subtractions from hours or wages
- Complete and accurate time capture: time clocks, timekeepers, or employee timesheets
Overtime Rules Compliance
While the FLSA governs overtime rules at the federal level, there are many states that provide more favorable overtime rules for employees. The most generous of these rules is in the state of California.
California Overtime and Labor Rules Compliance
Among various rules, employers in California are required to pay employees overtime rates for hours worked in excess of 8 each day and 40 per week. They are required to pay double time rates for hours in excess of 12 each day and 60 each week. All overtime and double time rates are calculated using a regular rate of pay calculation, i.e. regular time rate includes all bonuses and pay differentials earned during the work week. In addition, workers are entitled to receive overtime and double time pay for hours worked after six consecutive days of work in a work week. Also, workers are entitled to meal breaks and are entitled to receive a meal penalty if they miss their meal for certain qualified reasons.
Family Medical Leave Act Compliance
Pacific Timesheet ’s time and FMLA tracking address the following FMLA requirements:
- Track FMLA leave balances taken during any 12 month period.
- These FMLA leave balances can be taken for any part of a 12 month period.
- Update FMLA leave balances at the beginning of any 12 month period.
- Reset FMLA leave balances at the end of any 12 month period.
- Track the type of FMLA leave such as for the birth of child or other family matters.
- Track FMLA periods from the date of birth of an employee’s child for enforcing FMLA rules on leave.
- Employee FMLA journal/history entries can be tracked in the employee profile.
- Track health certifications required for family leave such as: descriptions of serious health conditions,
the date that the condition began or treatment became necessary
the expected duration of the condition or treatment.
- Track reasons for FMLA leave regarding personal health conditions that might determine reimbursement for health care coverage provided during FMLA leave.
- Flag for continuation or lapsed employer health care coverage.
- Track other important data related to the terms of coverage during FMLA leave.
- Status tracking for termination during FMLA leave.
- Track FMLA requests and approvals.
Why is labor law compliance so important?
Employers must remain compliant with a variety of state and federal labor laws to limit the potential liability of employee law suits and hefty fines. In many cases, compliance audits are successful when an employer can demonstrate that their time tracking record keeping is accurate and that their time management process is sound. The entire time keeping process needs to exhibit the consistent application and proper enforcement of rules and policies. In addition, changes recorded to employee timesheets need to be accompanied with adequate comments describing reasons for those changes. Any employer that fails in any of these key areas might expose themselves to liability from successful employee law suits or fines resulting from state or federal labor department audits.