Why employers need to have accurate overtime and recordkeeping systems
When companies calculate overtime wages for employees, there are many variables to keep in mind. The first step to creating a fair pay rate for workers begins with informing them of their rights under the Fair Labor Standards Act.
PayScale, an organization dedicated to helping employees and employers understand salary requirements, indicated the workweek is flexible, not necessarily aligned with the Sunday to Saturday schema that most individuals are accustomed to. That means workers can begin their work week on Tuesday and finish on Saturday, leaving Sunday and Monday as their weekend.
What's more, the number of hours accumulated during the regular work week is 40, meaning any work performed beyond that number of hours, regardless of the day, should be calculated at 1.5 times the regular pay rate. Accordingly, it's advisable for businesses to integrate an accurate time and attendance system that allows employers to keep detailed records of hourly or salaried employees to make sure everyone is paid fair wages for all duties performed.
Furthermore, many states require detailed record-keeping to maintain governmental standards. Without these systems in place, companies put themselves at risk for litigation.
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