Did you know?

So I learned something very interesting the other day. It may not seem like much, but for those of you who are concerned about using about older time and attendance systems like punch cards or paper timesheets that can either be lost or destroyed by fire, flooding or accident, you could be like some companies out there that can be unwittingly be opening the door for disaster...

The Federal Labor Standards Act (or FLSA for short) and the laws in most states require that employers and businesses keep detailed and accurate records of the hours that are worked by non-exempt employees on the payroll. In other words, even though you have employees that are being paid, it is the company’s responsibility to record time punches and hours.

…Have you ever thought about that? I mean the adage of, “an ounce of prevention prevents a pound of cure” definitely applies in this situation. I’ve never had to go through it but in just thinking about it, I couldn’t think of a bigger nightmare if I was running a company than to suddenly be confronted with a lawsuit where I needed such detailed and accurate records that have been safely backed up and securely stored.

I also learned that the U.S. Department of Labor issued an opinion where a company and employer can require exempt employees (those who cannot earn overtime) to record and track their hours as well, just as long as it won’t put the employee’s exempt status into jeopardy or using the timekeeping policy for the purpose of wage payment associated with the hours they actually worked.

Here is an excerpt of that article:

“Many employers incorrectly believe that all salaried employees are exempt or that by paying an employee a salary, they automatically become exempt. However, just as the labels 'employee' and 'independent contractor' don't determine a worker's actual status in the eyes of the IRS, the same is true for exempt and nonexempt employees in the eyes of the federal and state labor departments.”

Hhhmmm, suddenly having more detailed records becomes more important now, doesn’t it?

…Just thought I’d pass along the information to all of you.

--C. Cook

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