During 2011, the Department of Labor intervened on behalf of employees who were not paying workers for all of their time attendance, recovering nearly $225 million in back wages over the course of the year. At a time when employee lawsuits for overtime violations are on the rise, it's increasingly important for businesses to establish firm payroll policies.

A recent article by Business Management Daily outlines four steps for minimizing the opportunities of violations - communicating the policy, developing measures, using additional time tracking measures and enforcing punishments.

Many employers fail to properly inform workers about a change in policy, which can be a costly mistake if it leads to employee lawsuits or overtime abuse. When employers make an amendment to their employee handbooks, they must inform their workers and explain the consequences, the source explains.

Moreover, executives should make sure they have a timekeeping system in place that can measure employee attendance and alert them if a staff member is nearing, or have surpassed 40 hours of work in a week. If the handbook establishes that no overtime should be worked, management must be prepared to make the necessary scheduling adjustments.

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