It’s vital for every organization to accurately manage employee time and attendance. Tracking time off is a key function of every HR department. It ensures that all employees are fulfilling their obligations and that the employer is accurately compensating them in accordance with the law.
To help you go about it the right way, we have identified the following steps.
Step 1: Know the Law
The first step in managing employee time and attendance is creating a compliant workplace policy. To do so, you need to be proficient in the laws that govern time off.
This can be challenging considering the complexities of ever-changing employment law, yet it’s imperative. Failure to do so can have costly consequences. Workplace class-action settlements have skyrocketed in 2019. Wage and hour settlement figures doubled in 2019 to $449 million—up from $253 million in 2018.
Where your company is headquartered, where your employees work, whether they are exempt, non-exempt, full- or part-time, all have an impact. Familiarize yourself with the laws that affect your organization. New Jersey employers should pay particular attention to the following laws governing the state:
- Earned Sick Leave
- Federal Family and Medical Leave, and New Jersey Family Leave Programs
- “1099” Misclassification Laws
- Wage Theft Act
Step 2: Communicate Your Policy in the Employee Handbook
Creating a time and attendance policy is just the beginning. You need to ensure that it’s clear and effectively communicated to your team through your employee handbook. State your expectations for attendance in it, and the procedures that employees need to follow to record their time worked and use their time off. Include the potential consequences for those who violate the policy.
You also need documentation that the information was received by your employees. An important step is requesting that all employees sign an acknowledgment that the handbook has been received and read. In the event of an audit, your handbook and these acknowledgements could serve as crucial documentation to protect your organization.
If you need help navigating the above mentioned laws and properly including them in your handbook, set up a consultation to learn how BPHR, our HR consulting service, can help.
Step 3: Utilize a Reliable Time and Attendance Solution
The Society for Human Resources Management (SHRM) offers advice for avoiding costly penalties related to wage and hour violations. In addition to training managers and conducting periodic wage and hour audits, SHRM recommends “maintaining accurate timekeeping and record keeping practices through up-to-date systems.”
Laws like New Jersey’s Employer Obligation to Maintain and Report Records require employers to retain specific records containing timekeeping data, and payroll information. With cloud-based time and attendance solutions important records are readily available, should you be called upon to produce them.
Relying on manual processes and spreadsheets to calculate employee time and attendance is not only inefficient, it puts your organization at risk. A fully integrated solution helps you collect, manage, and process your employee’s time data with ease while safeguarding your organization from litigation.
Step 4: Discover Balance Point’s Solution
Read more about Balance Point’s time and labor management solution and how your organization could benefit from it on our website.
If you need help determining what is best for your organization, download our Guide for Choosing a Payroll and Time & Attendance Solution.