On the Law: Employee Timekeeping and Overtime liability

I know many people who work very long hours and their employers present them with plenty of opportunities to work overtime. I always find it very refreshing to see when employers recognise the efforts of individuals who go ‘beyond the call of duty’ so to speak.

I came across an article: On the Law: Employee timekeeping and overtime liability, which highlighted a scenario in Massachusetts in the US, where a company were found to be guilty of failing to pay employees correctly for the overtime hours they were working.

The Articles states: “Under state and federal laws, employers must pay employees who are not exempt from the overtime requirements of the Fair Labour Standards Act 1 1/2 times the employee’s regular rate for any hours worked over 40 hours during a regular work week.”

The company were aware that employees were completing work tasks during their break times that weren’t being recognised towards the overtime scheme. Whilst this isn’t enforced by law here in the UK, this is common place with a large number of the organisations we work with here at Thinking Software, who rely on Rota Horizon to identify when an employee needs to move to their ‘overtime rate’ based on the hours they have completed in a select period.

Its situations like this that also highlight exactly why there was great demand from employees to see employers take into account overtime when calculating holiday pay. From July 2015 new legislation meant that holiday is calculated on actual earnings, not basic pay. This too is something that is now calculated within Rota Horizon.

So whether it’s the burden of have to work out complicated overtime calculations, or if the new overtime and holiday pay legislation has added greater stress to your workload, here at Thinking Software we want to help. We are always on hand to simply highlight how a Time & Attendance solution could assist your business in driving down unnecessary Payroll spend and increasing operational efficiency.

Our Sales Team will be more than happy to speak with you however great your interest may be in the software. At this stage you may simply want some more literature to gain a greater understanding of the solution which we will send you by registering your details here. Alternatively, please don’t hesitate to call the team on 0800 854 471, or visit our website at www.thinking-software.com

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