Employers set up timekeeping policies to confirm they are paying their workers for all of their time and attendance, but these payroll processing systems can ultimately help them defend against employee lawsuits. The Department of Labor's Fair Labor Standards Act (FLSA) requires that companies pay workers for all of the time they spend performing job duties, and keep accurate records of employee attendance and information about staff members. 

These documents can be used to demonstrate that employers are adhering to all labor rights - paying workers properly for their regular hours and additional wages for overtime, as well as employing only those who are of legal age. Or, they can reveal that enterprises are using illegal pay practices to gain an unfair advantage over competitors. 

Timeclock records came in handy for HCR Manor are in a recent court case, according to an article by Sara Hutchins Jodka of Porter Wright Morris & Arthur LLP that was published by Employer Law Report. The firm used its payroll processing system in conjunction with firm policies to demonstrate that employee claims about unpaid meal breaks were illegitimate.

Employees alleged they were unfairly burdened to adjust timekeeping totals when they missed meal breaks, but the employer was able to prove that it's clearly stated policies explained how staff members were expected to reconcile time and attendance issues, Jodka wrote.

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