Timesheets are so tedious. Why do I even have to do them?

As a PEO, StaffScapes depends on accurate timesheets from their clients to ensure an accurate payroll.  Timesheets should be a fundamental and important aspect of every company that has hourly employees.  The DOL (Department of Labor) requires every FLSA (Fair Labor Standards Act) covered employer to keep records for every non exempt workers, including hours worked and wages earned.  While keeping track of hours worked may be a tedious task for the employee or employer, it protects both against fraudulent hours, unpaid hours, and can even minimize the chances of a DOL audit.

The timesheet protects the employee by verifying the hours worked and guaranteeing compensation for the hours worked.  All hourly employees should sign their timesheets, verifying the hours on the timesheet are correct.  This can help prevent mistakes such as not getting the right pay, missed overtime hours, etc.

Timesheets also protect the employer.  If an employee signs a timesheet and is paid accordingly, it can help prevent DOL claims and unhappy employees. 

For example, Company X always assumes its hours for its hourly employees.  Every week, they pay their full-time employees the standard 40 hours.  Marty works at Company X and thinks this is great. He can take a 2 hour lunch or come in late and not make up his time because he knows the company isn’t keeping track, and he will always get paid for 40 hours.  Sandra also works for Company X and is not too happy.  She clocks in an average of 5 overtime hours and is never compensated.  Sandra is fed up and decides to go to the DOL and files a claim against Company X for unpaid wages. Company X has no way to prove that Sandra didn’t work those overtime hours, but they also don’t have a way to prove she did.  Because the burden of proof is on the employer to prove the employee did not work the hours claimed, without time keeping records, the DOL will usually charge the employer for the amount of unpaid wages.  If the employer is unable to prove the hours and refuses payment, it can open them up to a DOL audit. 

The best way to encourage employees to fill out timesheets is stressing that it is for their protection and never making exceptions.  For example, employees should be tracking their time every day they go to work, not just for special projects, or when they have a deadline to complete something.  Making it a known policy and everyday task makes employees more willing to comply and complete their timesheets regularly.  Saving both the company and employee time and hassle just in case something goes wrong.

By T.Redding Payroll Specialist

See Also

• Recordkeeping and Reporting
  Every employer covered by the Fair Labor Standards Act (FLSA) must keep certain records for each covered, nonexempt worker.

Wages on days of inclement weather

Closing operations due to inclement weather raises the question of compensation for employees.  A major factor to determine is if they are exempt or non-exempt employees.  To preserve an employees’ exempt status employers are prohibited from making deductions for absences caused by the employer.  You must assume that all your exempt employees’ were ready, willing and able to come to work and are unable to doc their pay.

Employers have no obligation for compensation to non-exempt employees’ under FLSA for days when the business operation is closed.  Employers’ only have to pay them for actual hours worked.  If the employer doesn’t communicate the closure to employees prior to their arrival they employer would be responsible to pay employees’ for time worked.

For more information or help in creating policies and procedures please contact StaffScapes at 303-466-7864 or visit our website at www.staffscapes.com.

US Department of Labor proposing to update child labor rules.

On 4-17-2007, the US Department of Labor published a proposal to update the child labor regulations of the Fair Labor Standards Act (FLSA).  The proposal includes additional bans on hazardous activities as well as prohibiting 14 and 15-year-olds from employment in youth peddling activities or door-to-door sales.  The department is requesting comments concerning this proposed rulemaking and is encouraging the public to submit their comment using the federal website www.regulations.gov.  The official DOL announcement can be found at: http://www.dol.gov/opa/media/press/esa/ESA20070550.htm

StaffScapes will keep our clients posted as these proposals become finalized.

The U.S. Department of Labor (DOL) has released its latest Advisor to help employers and workers understand and calculate overtime pay.

One of Department’s most asked about employment laws is the Fair Labor Standards Act (FLSA). The FLSA Suite of elaws Advisors help users understand the minimum wage, overtime, and child labor provisions of the Act.  The Overtime Calculator Advisor is the latest addition to the FLSA Suite.  This new Advisor computes the amount of overtime pay due in a sample pay period based on information from the user.  The Overtime Calculator gathers input from users about certain factors used in determining overtime, including the primary method of paying workers, any additional compensation such as bonuses, commissions, and shift differentials, and information pertaining to hours worked.  The Calculator then totals up straight-time and overtime hours worked during a sample pay period and – based on the user’s inputs – calculates the overtime pay required.  A key feature demonstrates how the calculations were made.  (The Calculator does not attempt to calculate overtime in all situations and actual pay period earnings may differ from the results provided by the Overtime Calculator.)

The Department offers many other elaws Advisors covering a wide range of federal employment laws such as the Family and Medical Leave Act and the Uniformed Services Employment and Reemployment Rights Act. To view the Advisors, visit www.dol.gov/elaws.

Litigation is on the rise for state overtime compliance.

CCH Human Resources Management reports that claims of state overtime violations are increasing due to the attention that the new white-collar regulations of the Fair Labor Standards Act (FLSA) received. The change caused many plaintiff’s attorneys to focus their efforts on the differences between the federal and state requirements. Steven S. Greene, managing member of the law firm of Helms & Greene, LLC, while speaking at WorldatWork’s 2007 Conference and Exposition, stated that attorneys are exploiting the material differences between the federal and state standards, causing settlements and verdicts to soar.

StaffScapes, a Colorado based Professional Employer Organization (PEO), guides our clients through the complicated maze of human resource management, including state and federal labor law compliance. Please contact us at 303-466-7864 or info@staffscapes.com to discuss what our services can do for you.

A little-noticed provision of the Genetic Information Nondiscrimination Act increased child labor penalties under the Fair Labor Standards Act and added a significant penalty should an under-aged employee be seriously injured.

Penalties for violations have been increased to a possible $11,000 and there is a new $50,000 potential penalty if there is a death or serious injury of any employee under the age of 18 years who is working in violation of FLSA child labor limitations. The penalty may be doubled if the violation is a repeated or willful violation.  Serious injury means permanent loss or substantial impairment of one of the senses; permanent loss or substantial impairment of the function of a bodily member, organ, or mental faculty; or permanent paralysis or substantial impairment that causes loss of movement or mobility of an arm, leg, or other body part.  Employers should take special care with regard to summer hires and to make sure that they are performing proper safety training.  These new penalties became effective immediately.

Source: NAPEO.org

Minimum Increases July 24

Federal minimum wage will increase again on July 24, 2008 to $6.55.  This is the second of the 3 step increase put in place in 2007.  July 24, 2009 the federal minimum wage will increase again to $7.25.

In addition employers need to check the state minimum wage and compensate employees the higher of the two wages.  For example, in Colorado the state minimum wage is $7.02, so employers are required to pay at least $7.02 per hour.

For up to date posters or additional information on wage requirements contact StaffScapes, your Human Resourse Solution Center.  www.staffscapes.com or  303-466-7864.

You probably walk by it everyday.  That wall in the break room that is covered with posters.  Posters that you probably never look at.  Posters that may not have been updated since parachute pants were popular.  Many businesses do not know what is required of them and many do not know the degree of fines that could be leveled upon them if they are not compliant. 

Did you know that posters must be visible in a common area where employees will visit frequently?  For example, the break room or by the time clock.  If your business has multiple locations or operates on several floors, each requires their own set of posters to be easily viewed and accessible.  Where applicants apply for employment, the FMLA (Family Medical Leave Act),  EEO (Equal Employment Opportunity), and EPPA (Employee Polygraph Protection Act) posters are required to be posted as well.

What about other languages in addition to English?  Posters are not required to be in another language unless your business employs a non-English speaking workforce.

What are some of the fines for not having or not updating required posters and not adhereing to their policies?

*Fines from $100 to $70,000 depending on the infraction.
*Not posting the OSHA Job Safety & Health poster can get you a fine of up to $70,000.
*Federal FMLA non-compliance gets you a fine of $100 per offense.
*Violations of the Fair Labor Standards Act, (Minimum Wage) are up to $10,000 per violation. 
*Violations of the Employee Polygraph Protection Act could result in you having to appear in court and pay a penalty of up to $10,000 per violation.

Can you afford to not be compliant?  Here at StaffScapes, one of the benefits that we provide our clients include a packet of all required posters as well as updates mailed as soon as new laws are passed that dictate changes.  You know, the changes you planned to make but never did.  Now, with StaffScapes, you don’t have to worry about it.

For an updated list of all required posters, including the FLSA (Fair Labor Standards Act), FMLA (Employee Rights and Responsibilities under the Family and Medical Leave Act) and the EEO (Equal Employment Opportunity is the Law), please view the following links for Federal and State of Colorado Requirements.

For further assistance or more information, please contact StaffScapes, Inc. at 303-466-7864 or info@StaffScapes.com.