Make sure employee attendance records include all hours worked

The Department of Labor's Fair Labor Standards Act (FLSA) includes very specific information about employees' basic rights.

They must be paid for all of their hours worked at a rate no less than $7.25 per hour, which is the current federal minimum wage, unless they meet the requirements for an exemption. If non-exempt individuals work more than 40 hours in a single workweek, they must receive premium pay (one-and-a-half times their standard wage) for that additional time and attendance. Moreover, employers are charged with the responsibility of keeping accurate records of all employees' information and on-the-job attendance.

If employers violate any of these rights, as well as others, they could face penalties if they are investigated by the DOL's Wage and Hour Division. These cases can cost companies millions of dollars, depending on the severity and duration of the violation. Therefore it's in businesses' best interests to ensure their payroll practices are fully in compliance and they are issuing individuals the wages they have rightfully earned.

However, there are some situations - both intentional and accidental - that can leave businesses vulnerable to FLSA violations.  Some of which include administrative assistants who offer to finish up paperwork at home, restaurant servers who set up before clocking in and plant workers who must clean machinery after shifts have ended, according to California Employer Daily. Installing timeclocks in strategic locations, or providing individuals with mobile timekeeping systems can eliminate some of these potential compliance pitfalls.