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Managing Your Payroll : The How & Why
Recently, we had a webinar about the new laws affecting small businesses in 2017 to help educate pawnbrokers on how to protect themselves from litigation and spread awareness about the employment laws impacting them. One such area involves managing your payroll effectively and within compliance of current laws, which we will be discussing in this blog.
Wage and time clock discrepancies are one of the most common issues to plague small businesses. The ADP Research Institute found that of the federal court employment class actions filed, 90% were wage and time clock claims. Human resources in small business often times can be neglected or not emphasized adequately but can occur the hefty fines and litigation. Small businesses should understand the law so they can take necessary action to prevent problems before they happen.
For 2017, the minimum wage has changed in many states nationwide. Also, some states and cities are now mandating paid sick leave like California, Connecticut, and Rhode Island. You should verify if your state or city has passed any recent minimum wage laws to make sure you are in compliance.
Last year was one of the worst for payroll litigations. In 2016, the top overtime-related lawsuits amounted to $403,950,000. Also according to Law360, the wage and hour cases in 2015 totaled to 8,954, almost 900 more cases than the previous year. As you can see in the chart below, the FLSA (Fair Labor Standards Act) cases filed per year has steadily increased every year and is currently at an all-time high.
Even the largest corporations are vulnerable to payroll litigations and have paid millions of dollars to their employees. Last year, Walmart paid a $224 million lawsuit for stealing lunch breaks from 187,000 workers. Nationwide, businesses awarded employees $1.75 billion in payroll litigations. Imagine what impact a payroll lawsuit would have on your business. Do you have the proper safeguards and protection in place to protect you from what could potentially be a financially devastating lawsuit payout?
Here are some examples of major payroll litigations provided by Law360:
Settlement Amount: $240 Million
Violation: Unpaid overtime
Company: Los Angeles Children’s Hospital
Amount: $27 Million
Violation: Wages shorted, denied breaks, unpaid overtime
Company: Excel Direct
Amount: $13.5 Million
Violation: Denial of breaks, unpaid overtime, minimum wage violations
Company: Oil and Gas Pipeline Inspections Company
Amount: $9.2 Million
Violation: Unpaid overtime, payment of flat daily rate regardless of hours worked, no records of employee hours
Amount: $9 Million
Violation: Work without pay, incomplete records of employee hours and pay
Payroll management may be challenging to maintain and can cause unnecessary problems for your business. Keeping track of records and staying organized is important to be successful. At Bravo, we understand how overwhelming this can be, especially for smaller operators, so we are here to help you achieve compliancy with your business.
Last year, we released our integrated Time Clock feature that simplifies tracking the hours worked, commission earned, and paid time off. By clicking on the clock icon at the top right of the Bravo Dashboard or requiring at login, your employees can easily access the time clock feature and input their daily activities.
For managers, you can view an employee’s time activity and easily edit/delete existing payroll records. Also, you can modify the settings to require a “Manager Approval” when you need to be involved in the activity.
A time clock keeps both the employer and employee happy. With accurate record keeping and seamless integration, the Bravo Time Clock will help unify your business and increase overall morale.
Learn more about the Bravo Integrated Time Clock by filling out this form and a Bravo representative will reach out to you soon.