Time and Labor Management's Role in Regulatory Compliance
The days of analog time-clocks and paper time cards are long over. Advanced software is making time and labor management a much simpler task, allowing companies to spend less time accounting for punch cards and more conducting business. For the business owner or human resources representative, payroll and staff management are more easily handled, analyzed, planned, and adjusted than ever before.
Regulatory compliance with government labor regulations is a more complex issue than many realize, something many companies learn the hard way when they find themselves in violation. Usage of time and attendance solutions can ensure that none of the provisions of FMLA (the Family and Medical Leave Act) or FLSA (the Fair Labor Standards Act) are being inadvertently broken. A recent audit revealed as many as three quarters of companies don’t use software to track time and labor, which leaves them open to being investigated for compliance issues. As complex as federal labor laws have become, human resources departments are safer relying on automated time and attendance solutions to track employee hours and assignments. Today’s software solutions provide a plethora of tools for human resource managers, enabling access to centralized data for effortless tracking of employee status. Integrating time and labor tracking with payroll makes for an almost entirely automated system, permitting HR to focus on the people in the system, rather than the rules and numbers.
For companies that rely on manual time and attendance tracking, there’s always a risk that poorly tracked data or lax policies can lead to legal action that costs many times more than a system that will help enforce compliance. Inaccurate tracking of hours worked has led to several lawsuits in recent years, totaling millions of dollars in restitution, back wages and legal fees. Companies that dismiss the importance of accurate time and labor tracking are leaving themselves open to these sorts of issues, all of which can be prevented by company buy-in and enforcement of regulations. Implementing a comprehensive time management solution to serve as a final bulwark between a mistake and a lawsuit certainly never hurt, either.
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