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Time Will Tell: Tracking Employee Work Hours
May 21, 2024 3:07:10 PM
One of the most important aspects of managing employees is ensuring they are paid correctly. Not only will you get complaints from employees if you forget to pay for hours worked or calculate overtime incorrectly, but the Department of Labor (DOL) may also come knocking at your door if they receive complaints about improper pay practices. To avoid these employee issues and be prepared in case the DOL wants to take a look at your records, make sure you are tracking and properly paying for time worked for all nonexempt employees.
How to Track Time
According to the DOL, employers may use any timekeeping method they choose. This could mean using a state-of-the-art electronic timekeeping system equipped with biometric scanners (be aware, some states have laws regarding the use of biometric scanners) or something as simple as an employee keeping track of their hours with pen and paper. Whichever method you decide to use, you must ensure that the information is complete and accurate and retain your payroll records for at least three years unless your state requires a longer retention period.
In situations where a nonexempt employee is being paid on a piecemeal, pay for performance, salary, or other basis you must still track the actual time worked to ensure that employees are being paid at least minimum wage and overtime when over 40 hours are worked within one workweek.
Meal and Break Periods
While the federal law does not require that employees be provided meal or break periods, they do require that rest periods be paid in certain situations if they are offered. If you provide employees with a rest period of 20 minutes or less, these breaks are considered compensable and must be paid. Longer breaks, such as a 30-minute lunch break can be unpaid. Keep in mind that some states, such as California, requires that breaks be provided to employees after working a certain amount of time. If an employee requests additional breaks, such as for reasons related to a health condition, these can generally be unpaid as they are considered to the employee’s benefit.
Be cautious if utilizing a timekeeping system that automatically deducts for lunch breaks. If an employee is working through their designated lunch break, regardless of receiving prior authorization to do so, they must still be paid for this time, and you should correct the auto-deduction to reflect the time worked appropriately. Employees should also be made aware that if they work through their lunch break, they must let the appropriate contact know so this change to their time records can be recorded.
Breaks and Working Schedules for Minors
When hiring minors, you should familiarize yourself with the state and federal laws regarding when a minor can work, how long they can work in a day, and how many days they can work in a week. Most states have laws that dictate the work schedules a minor can be given and this can differ based on their age, if school is in session, and if the minor is enrolled in a work study program.
Additionally, minors may also require break periods depending on the state law. For instance, a minor working in Florida must be provided a 30-minute break for every four consecutive hours worked.
Timekeeping Responsibilities
When it comes to tracking employee time, the law considers this the employer’s responsibility. While you can require employees to track their own time and implement policies on employee timekeeping responsibilities, you should not withhold pay if an employee fails to turn in a timesheet or missed punches during the workweek. Employers should make their best effort to correct missed punches and collect timesheets in order to pay employees timely and accurately and, if necessary, make adjustments once the employee provides the missing information.
If you have any questions related to tracking your employees’ time, please reach out to your FrankAdvice HR Consultant.
