How Timekeeping Software Can Lead to Wage and Hour Violations

 In Employment Law, Overtime Law, Wage Law

Timekeeping Errors: Wage and Hour Violations

You may not have stopped to consider what happens to the record of your hours worked after you leave your place of work each day. Many workers wrongly assume that their hours are accurately recorded and converted into the dollars and cents that appear on their paychecks. In reality, there are a number of legal (and illegal ways) in which employers are known to manipulate their workers’ hours, including the use of timekeeping software. Statistics reveal that 60% of workers in the United States are paid on an hourly basis, and their employers often use software to manage this information and send it on to a payroll department. The following will take a look at the use of wage and hour software in the workplace and how it can potentially lead to serious wage violations.

Hourly Records Regulations

While there are federal regulations that dictate how employers must manage details workers’ hourly records, these regulations were initially created in 1987. In the late 1980s, it was beyond the scope of the law’s drafters to anticipate today’s timekeeping software, which is capable of being modified and manipulated in illegal ways. Instead, these laws were designed for a generation of workers who used paper-based records to store information about their hours worked.

Rounding Worker Hours

One of the most worrisome and common features found in timekeeping software includes “rounding,” which alters a workers’ actual time worked to conform to established intervals. For example, some companies round to the nearest six-minute increment. If a worker does not work in exactly six minute intervals, there is a risk that timekeeping software will end up rounding down and making it appear as if a worker should receive less compensation than he or she deserves. Rounding can also create trouble if it appears as if a worker is clocking in late or logging out early. While rounding might not seem like a significant problem because it often involves very small intervals of time, it is important to understand that these intervals can add up over time and represent a substantial amount of money that stolen from a worker.

Automatic Break Deductions

Another common and troubling feature of timekeeping software is that it automatically deducts scheduled breaks from a worker’s hours, regardless of whether or not the worker takes a break. While this feature was designed to make timekeeping more efficient for workers, when this feature is coupled with rounding, a worker sometimes must work longer or receive shorter breaks to take these automatic deductions into consideration.

Supervisors Edit Time Cards

Timekeeping software often provides supervisors with the ability to modify worker time cards. While this feature allows employers to correct mistakes that an employee might have made, there is also the potential that an employer will use this feature for illegal reasons. For example, employers might modify hours to make it appear as if a wage and hour violation did not occur.

Contact an Experienced Wage and Hour Lawyer Today

If you are a worker who was not adequately compensated by your employer, you should not hesitate to speak with a knowledgeable wage and hour attorney. Contact Herrmann Law today to speak with an experienced lawyer who will remain committed to fighting for the compensation that you deserve.

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