The FLSA Knows What Mistakes Most Companies Make: Common Violation 1 and how to avoid it.

FLSA Compliance laws can get tricky.  The laws can be hard to understand, and misunderstanding the laws could cost your business money.  Understanding where you are failing to follow FLSA regulations gives you a chance to fix the violations. This blog post is not meant as a substitute for legal council.  Always contact legal representation if you have any questions regarding FLSA compliance. 

The FLSA knows where most companies make mistakes.  You should know too so you can avoid them. Where do most companies go wrong?   The following list was collected by the FLSA and is available for you to download from their site. Click here.  

Common Violation #1:  
Failure to record all hours that were actually worked to include time spent before and after the shift.  

Problem: 
Collecting time and attendance data can be an overwhelming task, especially when your business has crews scattered across different job-sites.  Inaccurate hours, unapproved hours, lost time sheets can all contribute to incomplete recording of time and attendance.

Solution:  
Following three steps can protect your business from wage and hour litigation:

1.    No more paper. 
It is easy to misplace paper.  Handwriting can be hard to read. Hand written time cards have to be manually entered into the accounting system.  The more times data entry is involved, the more chances for mistakes.  Instead, use a time clock that records a clock IN and OUT in Real-Time and exports the data to a .csv file that is easily imported or, better yet, integrates with your accounting system.  Integrating time and attendance with your accounting system eliminates lost, unreadable time cards as well as removing extra opportunities for mistakes caused by human error.

2.    Clock IN or OUT includes a GPS stamp.
Location, location, location.  Knowing not only when but where your employees clock IN or OUT gives your business advantage in a wage and hour lawsuit

3.   Add an approval process to your workflow.

On-site approval of employee time and attendance records make it clear that there aren’t any discrepancies.  Whether the approval process takes place daily or weekly it allows discrepancies to be addressed and resolved before the FLSA gets involved, and fines get hefty.

Time and attendance software clocks employees IN and OUT in Real-Time eliminating the end of the week “guessing game” that accompanies filling out a form or paper time cards.   A good software solution will “stamp” each clock IN or OUT with the date, time and GPS location.  Real-time approval from managers and employees confirms at the end of each shift, or week, that the time is accurate.

Investing in a mobile resource management solution with a great time and attendance feature can protect your business from wage and hour litigation.  However, it is important to know the laws in your state and make sure that you are following them.  Ignorance is not an excuse when it comes to wage and hour litigation.

Come back next week to read our  post on the 2nd  most common FLSA violation and learn how to protect your business from litigation.

See how AboutTime can work with your business.

Don't stick with what works.

Often in the construction industry a successful company doesn’t see the need to implement new technology because they have always been successful doing things the way they have always been done.  While in the past the “stick with what works” motto has been a recipe for success, in today’s tech savvy world it is a recipe for failure.  

“The biggest failure however is to believe that past success will continue. On the contrary, past success during the industrial economy is one of the biggest obstacles to innovation and success in the knowledge economy.” Stated Claude Legrand, managing partner of ideaction, inc, in a recent article published on HR.com

Technology provides huge advantages to traditional means of collecting information from remote projects.   Savings in time, savings in money, more productive employees, better project control, are just a few ways that technology provides an advantage.  If your largest competitor is improving their business with technology while you “stick with what works,” who will end up ahead? 

Read here on how to choose a mobile resource management solution for your business.

Joke:  What is the definition of a project manager?  The conductor of an orchestra in which every musician is in a different union.

Most jokes are funny because they are true.  So if a project manager is a conductor and the crew he is managing is a symphony how does he keep every musician from playing their tune in order to create a beautiful melodious harmony?  Or in other words, how does the project manager organize all the different tasks to ensure everything completes at its scheduled time?  Use a Resource management solution like AboutTIme. 

Download this Free White Paper to see how you can manage your project pro-actively instead of re-actively. 

FLSA Lawsuits Increase Over 500%

http://www.gao.gov/products/GAO-14-69 A  Government Accountability Office Report (GAO) reported that FLSA litigation increased by 514 percent since 2012.  Even more disconcerting for    The number 1 FLSA alleged violations, 95% to be exact, were from overtime violations.   Half of the overtime violation involved inaccurate record keeping.  Isn’t it AboutTime to implement a time and attendance solution that will provide accurate record keeping?     

construction business is that the construction industry along with Hotels, manufacturing and service industries, makes up more than half of all FLSA cases.

If you haven’t implemented a system, then it is time to do so.  What constitutes a good Time and attendance system?  What type of system can protect your business from FLSA ligation?  Read here. 

Cost-Effective?

I saw an article today on cost-effective apps for contractors and the first thought that came into my mind was “what exactly justifies cost-effectiveness?”  Is something cost effective because it gets you by, and it is cheap to purchase, or is something cost effective even if it costs more than cheaper solutions, but gives your business the right results. Just because something takes little to no investment doesn’t necessary mean it is cost-effective.   

You have to look at both the cost and the effect the product has on your business to decide if it is cost-effective.  So how do you decide what solution provides the best solution for the best price? 

First you need to take a good look at your business and how you run it.  Factor in all aspect of your work-flow.  Not only look at the money you spend on payroll but look at the amount of time you spend collecting, deciphering and entering payroll data, after all, time is money. 

Now, make two lists.  One list should include features that are necessities, meaning features that you must have in order to reach the results you want.  The second list should include features that you want.  Wants and needs are two very different things.  A “want” is a feature that would be nice to have, but without that feature the solution will still produce the desired results.

Last, compare solutions with what providers offer and what your needs are.  How much time will you save?  How much money will you save?  What is your ROI for each solution?  Now look at your “wants list.”  What extra features does each solution provide?  How much will those features add to your job quality?  How much time will they help you save?  How much money? 

You may notice that just because a solution is free or cheap doesn’t necessarily make it the most cost-effective solution.  

Take a look at our ROI calculator to see just how cost-effective AboutTime is.

Construction Jokes

It's Friday!  Enjoy your weekend everyone and to kick it off here is a little joke.

A carpenter walks onto a job site of a large company and hands the foreman his application.

The foreman begins to scan the sheet, and notices that the applicant has been fired from every job he has ever held.

"I must say," says the foreman, "your work history is terrible- you've been fired from every job!"

"Yes," says the carpenter.

"Well," continues the foreman, "there's not much positive in that."

"Hey now!" says the guy as he pokes the application. "At least I'm not a quitter!"

Mobile Resource Management Infographic

On a single construction project, large numbers of employees work on multiple tasks.  Each task may involve multiple steps, and each step may involve multiple people.  The use of technology in construction is fundamental in increasing the efficiency of running any project.   Technology allows real-time visibility of project details and allows for easier communication and faster decision making.    Have a look at this infographic from AboutTIme that shows how using a mobile Resource management solution works for your business.