Fair Labor Standards Act (FLSA): Know the Rules and Avoid Litigation

Fair Labor Standards Act (FLSA)

Make Timesheets Work for You

4th in a 4-part series

In Records and Requirements, we talked about the records you should be keeping for your exempt and non-exempt employees.  But how do you maintain these records efficiently, and without a lot of hassle?

Using automated timekeeping software can help you comply with FLSA, because it collects all the time in one place, and makes it easy for employees to report their work hours.

Remember that non-exempt employees must keep track of all their work hours, even if they don’t work overtime.  If they work more than their standard 40 hour work week, the overtime should be included in the timesheet on the appropriate day.  This will give you and your employees a complete history of all time worked during their tenure with your company.  And because automated timekeeping systems can store data for years, you can quickly generate reports if those Department of Labour auditors come knocking.

Choosing the Best Timekeeping System for Your Company

Let’s face it – employees hate filling out timesheets.  Why?  Because it keeps them away from the work they’re paid to do.  To make sure your people will use your timekeeping system, find a timesheet that’s easy to use.  Employees should be able to report their time in a matter of minutes so they can get back to their regular work. Of course, that’s only part of it.  The software also should be able to manage your internal policies and comply with the FLSA requirements.

Here are some things to look for:

  • Timesheets are easy to use and quick to fill out
  • Employee information is easily accessible and can be updated at any time
  • Overtime can be viewed in the timesheet and tracked in reports
  • Overtime pay is calculated automatically, with necessary adjustments (time and a half, double time, etc.)
  • Work hours can be moved to your company payroll system
  • Timesheets can be audited at any time, with historical records of changed entries and overtime hours
  • System has large storage capacity to keep records for many years
  • Software can be backed up regularly to protect your historical information

Remember, the most common cause of non-compliance is inadequate or inaccurate record keeping – which can also lead to payroll mistakes.  Using an automated timesheet application in conjunction with your company’s payroll system can help reduce these time and payroll errors, and avoid costly litigation from FLSA violations.

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