Business requirements have changed. The more information that can be collected the more financially profitable the business can become. Labor laws are becoming stricter with stiffer penalties. Better record keeping is crucial in avoiding legal compliance issues. This is a huge hurdle when dealing with wage and labor grievances from employees. Labor restrictions have become more favorable toward employees. The employer now has to be more responsible to document any time card transactions that wasn’t controlled by the employees. Adjustments to the start and end shifts require proper documentation.
Those employers that use paper forms to track these adjustments increase labor costs and increase error rates. Eventually the law would side with the employee. Tracking “Sick Leave” or getting an employee to approve his “Time Card” can be a daunting task. Purchasing a time clock or using an “App” will still require you to do manual calculations, incur a monthly service or add additional hours to do manual calculations.
Handling this paperwork and processing manual shift changes can be time consuming, eating up significant parts of managers’ already busy days. Time clock functionality integrated into POS systems does not necessarily offer the best security especially when a fellow employee can clock another one using their PIN code. A biometic clock can actually create a “Cost Savings”. Trying to piece together the clock-ins and clock-outs of every employee for a pay period can be extremely painful and costly, as employers will generally want to err in the favor of the employee.
There are so many solutions out there that offer differing levels of advantages. The key to finding the one that fits your business is one that configures and adapts to the way you run your business. Though this may sound like additional costs there are some that have human support to tailor it to your needs. Using a Payroll Provider that offers “Cost and Time Efficient” services is the best option.
California recently enacted AB 2770 which provide provisions that protect Employers and Accusers/Victims of Sexual Harassment from liability by an alleged harasser after a complaint has been filed.
AB 2770 protects employees who report sexual harassment, based on credible evidence and without malice. This ensures they won’t be liable for injury to the alleged harasser’s reputation. As such it now protects the communications between the employer and victims/witnesses. An employer can now reveal on a job reference without fear from a defamation lawsuit.
Take time to investigate what you would do in these cases. Knowing what to do can save you time and money.
If you have questions reach out to SimpleTime for a “Free” consultation on what steps to take. Learn to respond quickly and appropriately to protect your employees and company.
California Employers should know that failing to promptly and accurately pay employees for all hours worked can lead to expensive class-action lawsuits. It's essential to also note that employers that don't list certain information on pay statements can find themselves in hot water. One of the most recent ones decided and not mainly known is required Sick Leave balances and usage must be listed on the Pay Stub.
Complying with California's wage statement provisions is a lot more complicated than people probably think. At first glance, the rules may seem small and some may consider overlooking them, but there are legitimate policy reasons behind a lot of them. Justifying ignoring them can create greater issues for any size business. Thinking that the explanation of “I was not aware” will resolve any litigation will not be acceptable.
The purpose is to provide transparency to workers regarding wage calculations and to give employees enough information to verify that they are being properly paid, according to the state Division of Labor Standards Enforcement.
Regardless of the Payroll Service provider, Operating System or Accountant/Bookkeeper the Employer will be held for 100% compliance. Failure to comply can lead to significant per-pay-period penalties. Even the slightest mistake or omission could create thousands of dollars in liability.
That's why employers may want to consider personally verifying using this information or consulting an attorney for review.
What Must Be Listed?
California Labor Code Section 226(a) outlines nine specific items that must be included on a pay statement:
- Gross wages earned.
- The total hours worked by the employee (unless the employee is exempt from overtime).
- The number of piece-rate units earned, if applicable.
- All deductions made from wages.
- Net wages earned.
- The pay period beginning and end dates.
- The employee's name and only the last four digits of his or her Social Security number (or an employee identification number other than a Social Security number).
- The name and address of the legal entity that is the employer.
- All applicable hourly rates in effect during the pay period and the corresponding number of hours the employee worked at each hourly rate.
There is also an element that employers will find in the Healthy Workplace Healthy Family Act. The act entitles most California employees to accrue one hour of paid sick leave for every 30 hours worked, but employers can limit use to 24 hours or three days of accrued leave each year. Employers must show on a pay stub—or a document issued the same day as a paycheck—how many days of sick leave an employee has available.