Do you have a time clock system that employees use to record the hours they work? Make sure it allows hourly employees to record the overtime they work.
Otherwise, they may later argue that they worked overtime hours and your time-keeping system was designed to discourage them from tracking those extra hours and getting paid overtime.
Recent case: Kenneth and several other hourly employees who worked in cellphone sales sued their employer for alleged unpaid overtime hours.
Their employer argued that it used a time clock that allowed employees to track all their hours and that the employer couldn’t be blamed if the employees didn’t get paid overtime.
The employees, on the other hand, argued that the time clock only allowed for inputting regular and lunch times, not overtime. They claimed that the employer essentially designed a time-tracking system that either made it impossible to maintain accurate time records or was complicated enough to discourage tracking overtime.
The court said the case could go forward and the employer will have to show that its system accurately tracked all hours worked—whether overtime or regular hours. (Lindsay, et al., v. Clear Wireless, et al., No. 13-834, DC MN, 2014)
Final note: Remember that the Department of Labor has a smart phone app that makes it easy for employees to track regular and overtime pay. It’s simple to use and free. Employees will check its calculations against yours.
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