How Can an Employee Time Clock Software Enable Labor Law Compliance for Your Organization
Time tracking is necessary as it tells employers how employees are spending their time at the workplace and whether there is any scope for improvement in productivity. Employee time tracking software allows employees to track time spent on different tasks.
The software is used in several industries which employ hourly or freelance workers. Here is some information on how employee time clock software helps companies in labor law compliance.
What Is Fair Labors Standard Act?
Minimum Wages Rule
According to the Fair Labor Standards Act, every employer must keep accurate time records for all non-exempt employees. Non-exempt employees refer to workers who are entitled to receive federal minimum wage and overtime pay. The non-exempt employees have a 40-work hour’s week. The overtime pay rate is one and half times the standard pay rate.
Timesheets Are Required By Law
As per the Fair Labor Standards Act, companies need to record hours worked each day and total hours worked each week. The employer also needs to keep a record of the overtime of each non-exempt employee. The company can follow any time-keeping method, including timesheets printed on paper, timesheets filled online, or automated time-tracking systems.
Why Time Tracking Software Is A Necessity?
If the employer fails to maintain accurate records of the hours worked, the employee can file for damages. To claim the damages (unpaid due), the employee needs to establish the fact with his testimony and testimony of the other two people. The court is more likely to pass the judgment in favor of the employee, and the employer needs to pay as per estimates as per the employee’s recollection.
How Does Employee Time Tracking Software Help In Labor Laws Compliance?
The only requirement as per the Fair Labor Standards Act is to maintain an accurate record of the employee’s total hours worked. The time clock software is primarily designed to create timesheets to record this information. Here are some features of time tracking software that helps in labor laws compliance.
Create Timesheets With Any Device
The employee time tracking software allows employees to clock in and clock out with any device. Some of the options available are a mobile, web browser, tablet, or manual entry. It means no matter where the employee’s location is, and he can always clock in and clock out.
This feature allows companies to maintain a record of hours worked for every employee, including remote employees. The employee can clock in the time-tracking software that will automatically record time. The next step is the employee chooses the project he is working on that allows companies to bill their clients accordingly.
Timesheets Stored In The Cloud
Employee time tracking software also allows employees to fill timesheets online. All they need to do is log in to their account and fill the timesheet hosted in the cloud. It helps employers to calculate accurate hours worked. Besides, it also allows employers to know how much time was spent by an employee on different tasks.
The HR/Payroll department has to compute the weekly, bi-weekly, or monthly salary as per information entered in the timesheets. The time tracking software can generate payroll reports by collating data entered. All this reduces the burden on the payroll department, and they can focus on core tasks.
The time tracking software can generate weekly, bi-weekly, or monthly payroll reports, and the payroll department can disburse wages/salaries accordingly.
The software can provide detailed employee timesheet records, including GPS location and time stamps. It comes with a facial recognition feature that ensures only an authorized person (employee) can clock in and clock out. Such a feature is useful for companies who have employees working remotely.
Features That Help with Labor Laws Compliance
Besides record keeping and time tracking, the employee time tracking software has several features that help labor laws compliance.
The software can enhance your payroll accuracy by following custom rounding rules for timesheets. It will ensure employees will not have any complaints of being underpaid.
The software allows companies to implement overtime policies and enter overtime rates. Based on the policies and overtime rates, the timesheets software can generate Fair Labor Standards compliant payroll reports.
The timesheets software allows employers to create break entries as per local labor laws. The software can ensure no deduction in the wages due to the breaks as per company policies and labor law.
To sum up, the employee time tracking software offers several benefits like visibility in employee’s productivity, accurate calculation of wages, and meeting labor laws compliance. The best part of this software is that it works with various devices, allowing companies to pay every employee the right wages and leave no room for complaints or misunderstanding.
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