DOL: Not enough to have compliant timekeeping policy on the books
Supervisors and employees must follow your timekeeping policy as it’s written.
Even if the timekeeping policy you have on paper is compliant with the law, if it’s ignored, it can work against you.
One employer learned that the hard way in a recent wage and hour case.
Perception v. reality with timekeeping policy
The Dept. of Labor (DOL) brought a lawsuit against Five Star Automatic Fire Protection LLC. The lawsuit claimed the employer failed to pay employees for pre- and post-shift work.
Employees were regularly asked to show up to their shifts 15 minutes early to perform work tasks. Foremen not only had to show up early, but they had to drive work trucks to and from job sites each day. None of this time was recorded or paid.
In its defense, Five Star claimed it had a timekeeping policy on the books stating that workers must report any time they’ve worked.
However, supervisors discouraged several employees from reporting any time they worked outside their scheduled shifts. So workers believed they wouldn’t be paid for it.
Because of this, the court said the company actually had a de facto timekeeping policy to not pay for this time. This negated its official policy.
So be sure to tell supervisors they need to be certain their people are tracking hours worked appropriately. It’s time-consuming and expensive to correct any problems after the fact, especially if the feds come knocking.
Bottom line from the DOL: All hours worked need to be recorded and paid. The official timekeeping policy in your office should reflect this. If workers must consistently work extra hours to complete tasks, it may be time to consider delegating duties.
Free Training & Resources
Webinars
Provided by Insightsoftware
Further Reading
One business that claimed a research tax credit ended up with a tax penalty instead. The company fought back in court, but the situation di...
The rollercoaster ride continues as federal regulators reevaluate the current overtime rule and what it means to meet the salary level test...
After payday, an employee flags a missing differential. HR sends the details to payroll, and the team begins retracing punches, schedules, ...
Less than six months ago, United Parcel Service (UPS) announced its full-time drivers would be paid $170K per year in salary and benefits a...
It’s no surprise that a medical expense like a dental exam can be paid or reimbursed under an HSA, but what did IRS recently say abou...
The DOL has begun to roll out its Retirement Savings Lost and Found. It’ll be populated with information from plan sponsors and admin...