Out of control overtime blamed on payroll processing system

The high overtime pay totals noted at Malta's Mater Dei Hospital in the National Audit Office's annual report were caused, in part, by a deficient payroll system, according to The Times of Malta. The issues caused by the system forced payroll office employees to put in additional hours for manual records checking.

As a result of this extra work, three clerks received tens of thousands of extra wages on top of their normal salaries the news provider adds. The Department of Labor's Fair Labor Standards Act (FLSA) establishes that employees in the United States must receive at least time-and-a-half their regular pay rate if they work more than 40 hours in a single week.

"Computerization of this activity is under way but the complexities due to the wide variety of different salary and allowance arrangements in the different professions are making this implementation long and complex,” said a ministry spokesman, as reported by the source.

Investing in adequate timekeeping systems can help employers adhere to FLSA provisions as well as their payroll budgets. Some programs can push alerts to managers, so they receive notice when a worker is nearing, or has reached overtime caps.