In a highly developed society, you'll find that legislation and regulation in many areas is increased. Business is an area of society that is hard hit with regulation, and people can study business law for years and still not have a comprehensive understanding … and that is only the legal system for one country! You may not realize the extent of laws that relate to timecard provisioning and use in the United States. Today we are looking at the laws themselves, and how telephone time clocking can help employers comply with their obligations with a minimum of fuss, effort and financial investment.
Federal versus state laws
We are looking at federal laws with regard to timekeeping for employees today; however, many states have laws that are stricter than those imposed at the federal level. You must always go by the stricter principle, so check with a local employment law expert to ensure that you are complying the relevant standard.
Types of timekeeping
Almost any type of timekeeping is permitted under federal law, as long as it is an ACCURATE representation of the time worked by a particular employee. So, even the most low-tech methods, like pen and paper are allowed. Of course, you will have process and operational considerations when you choose a method of timekeeping -- low-tech isn’t necessarily best. Telephone time clocking is one of the most accurate, indisputable methods available. Methods may include:
- Pen and paper
- Timecard punch machine
- Electronic badge readers
- Scanners
- Telephone time clocking
Who are the laws directed at?
Employees that are entitled to overtime pay are the target of most timekeeping laws in the U.S. However, employees that are exempt from being owed overtime still need to keep accurate time records for sick pay and leave purposes.
Who is responsible for the accuracy of the records?
Given the fact that low-tech methods of timekeeping are perfectly lawful and it isn't reasonable to ask a manager to record every employee coming and going, it is the employee's responsibility to make sure timecards are accurate. Unfortunately, there are too many ways in which they can be inaccurate by just a little bit … costing corporations a lot of money!
Rounding
According to federal law rounding on time cards is allowed, as long as it doesn’t unduly benefit the employer and it balances out over time. The problem with this policy is that there is no way to know (without extensive monitoring) in a manual timecard system whether it actually does balance out. Telephone time clocks overcome this difficulty for employers.
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