Labor law compliance is something that every business should be aware of and do their best to maintain no matter what. This applies to overtime compliance as well. There are state and federal guidelines that determine when and how an employee must be paid overtime.

Although overtime can be expensive for businesses, trying to manipulate time cards and change hours to avoid paying overtime is a violation and can result in severe penalties. The same can be true for overtime that is not paid correctly. This means that having a way to record hours and pay rates accurately is a must. A time card app can help with all of these things.

The features that a time and attendance app brings to the table allow for businesses to ensure they remain compliant even when there are large numbers of employees. Best of all, most of the process is handled automatically, and records are kept so that there is proof of hours worked and if manipulation was attempted. This is important to keep both businesses and employees honest.

Alerts Let You Track Hours and See Who is Close to or Has Already Earned Overtime

Knowing who has worked overtime or who is about to, you can keep your time card records accurate and up to date and ensure that employees who work overtime are correctly paid. These team time tracking records help you maintain compliance, and the ability to track hours lets you see if too much overtime is being paid out or if there is an issue with performance that is necessitating lots of overtime.

While it is a violation to manipulate timesheets to avoid overtime, managing performance through a time card app lets you see where issues may be coming from that are resulting in unnecessary overtime.

You can then adjust staffing levels, check employee performance, and adjust hours to control overtime spending without violating overtime compliance. This will improve efficiency and boost employee morale, as too much overtime can negatively impact the workforce and lead workers to feel like they are being overused.

Calculate Overtime Automatically Based on State and Federal Guidelines

A timesheet management can handle all of the complex calculations needed to pay overtime automatically. This ensures that pay rates are accurate for overtime hours worked and that all pay falls within state and federal guidelines. Overtime wages are higher than standard wages and must be paid accordingly. Failure to take this into account leads to overtime compliance violations.

Since a time card app calculates all of this automatically, there is no risk of underpaying workers for overtime hours worked. This also reduces employee pay disputes and leads to a happier and more productive work environment.

Advanced Reporting Helps With Monitoring and Audits

The advanced reporting features built into a job clock app allow you to track hours and overtime and make changes when necessary. This ensures that records are kept up to date and accurate in the event there is a discrepancy.

Keep up-to-date employee non-exempt employee time tracking records can also help in the event of an audit by the state or federal labor board. The detailed reports keep track of everything related to employee hours and show any compliance issues. These issues can then be rectified so that compliance is maintained.

In the event of an audit, this can save the business from paying heavy fines or even being shut down due to compliance violations.

Leveraging a time card app to keep your business overtime compliant can not only save your business money, but it can also reduce the risk of a shutdown or unnecessary penalties by keeping track of everything for you and having records that hold the business and employees alike accountable. This can save your business several headaches and possible problems.