Solid timekeeping policies can guard companies against FLSA violations
Fair Labor Standards Act (FLSA) violations can be very damaging for companies. If the Department of Labor's Wage and Hour Division discovers payroll practices that are non-compliant, it can order employers to pay employees back wages and penalties. This is detrimental to firms' finances and reputations, as customers might choose not to patronize businesses that do not offer employees fair pay.
However, a case involving SureScript shows how businesses can defend themselves from time and attendance lawsuits with thorough payroll policies that have been clearly detailed in employee handbooks. The United States Court of Appeals 10th Circuit granted judgment in favor of the employer when former employee Frank Brown tried to recover back wages for unpaid overtime.
Mr. Brown alleged he had worked as many as 80 hours per week between July 2008 and October 2008 when he was performing job duties from home. Although Brown had been given a copy of SureScript's employee handbook at the time he was hired, he did not adhere to the company's policy for recording employee attendance, which required him to enter all hours worked in a timekeeping log.
Because SureScript kept accurate records of other employees' attendance and provided home workers like Brown with remote access to the system, the court decided it was Brown's responsibility to account for his overtime. Since he had not done so throughout those months, the employer was not found in violation of the FLSA.
As more employees work from home, businesses might find it's time to implement mobile time tracking systems that will allow them to maintain accurate records regardless of staff members' locations.
However, a case involving SureScript shows how businesses can defend themselves from time and attendance lawsuits with thorough payroll policies that have been clearly detailed in employee handbooks. The United States Court of Appeals 10th Circuit granted judgment in favor of the employer when former employee Frank Brown tried to recover back wages for unpaid overtime.
Mr. Brown alleged he had worked as many as 80 hours per week between July 2008 and October 2008 when he was performing job duties from home. Although Brown had been given a copy of SureScript's employee handbook at the time he was hired, he did not adhere to the company's policy for recording employee attendance, which required him to enter all hours worked in a timekeeping log.
Because SureScript kept accurate records of other employees' attendance and provided home workers like Brown with remote access to the system, the court decided it was Brown's responsibility to account for his overtime. Since he had not done so throughout those months, the employer was not found in violation of the FLSA.
As more employees work from home, businesses might find it's time to implement mobile time tracking systems that will allow them to maintain accurate records regardless of staff members' locations.
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