Making a mistake on your employee’s payroll obviously costs the employee their due wages but it can also cost you, the employer, in lawsuit damages. This is the last place you want to end up. Wage and hour lawsuits are expensive. And with the Department of Labor planning to hire 300 more investigators, small businesses will be even more at risk for getting caught.
Some of the most common mistakes companies make that can lead to incorrect payroll include:
- Allotting comp-time as overtime “pay”
- Manually adjusting time sheets to reduce overtime
- Paying straight time even for hours over 40
- Being unaware of complicated California overtime laws
- Calculating overtime biweekly rather than weekly
- Misclassifying non-exempt employees as exempt employees
- Allowing employees to finish work at home on their own time
- Not tracking hours at all and paying a set weekly wage
- Refusing to pay for “unauthorized” overtime
- Not paying employees for setup time
- Not paying employees for travel time (during working hours)
Never Make a Wage and Hour Mistake Again
Timesheets.com helps you cover all your bases to avoid or recover from litigation. We retain time card data for years, calculate overtime correctly every time, encourage correct employee classification, and our customer service team is here to help!