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For all U.S. based firms or firms with employees within the U.S., FLSA compliance is a primary responsibility. Ask anyone in HR or management and they’ll inform you how vital it’s.
At the identical time, they’ll inform you how time-consuming it could actually be. Running a distant business could make it even harder to comply with the FLSA.
As distant work becomes more popular, many firms are grappling with questions on the right way to stay compliant in recent distant or hybrid work environments.
What’s FLSA compliance?
To place it simply, Federal Labor Standards Act (FLSA) requires employers to pay non-exempt employees hourly wages for all hours worked, including time spent outside regular work hours.
It also establishes minimum wages, extra time pay, recordkeeping, and youth employment standards. This law states that employees have to be paid no matter where they work and have to be paid for any extra time.
Businesses of all sorts must comply with the FLSA by ensuring that employees are paid fairly for all hours worked to guard themselves from legal consequences and fines.
Why FLSA Compliance is So Necessary
- Legal obligations: The Fair Labor Standards Act (FLSA) is a federal law that requires all U.S.-based firms or firms that employ staff from the U.S. to comply with its regulations. Failure to comply with the FLSA may end up in significant fines, litigation, and damage to an organization’s status.
- Wage Theft Claim Protection:FLSA compliance ensures that employees are paid fairly for all hours worked, which protects firms from wage theft claims and potential lawsuits. These claims can result in financial penalties and legal fees, further emphasizing the importance of accurate time tracking.
- Worker Trust and Retention: Ensuring that employees are paid well builds trust and loyalty within the workforce. Employees who feel secure about their pay usually tend to stick with the corporate, which reduces turnover rates and related costs.
- Complexity in distant work environments:With the rise of distant and hybrid work models, maintaining FLSA compliance has turn into more complex. Firms must now track hours worked across time zones and ensure compliance no matter where work is performed.
Now, as distant and hybrid work becomes more common, organizations need a simple and accurate approach to track worker time.
- Stop manually updating spreadsheets and checking different systems to compile reports. Time Doctor makes it easy by showing you total hours worked on our real-time dashboards and thru our analytics reports. Tracked Hours Report shows the entire hours worked by each worker and will be easily exported or configured to be routinely emailed to managers and administrators each day.
- Time Doctor tracks each online and offline work. Sometimes employees have issues with web connectivity or poor Wi-Fi, which might cause issues with accurate time recording. Time Doctor will proceed to trace activity throughout the workday even when employees are offline, ensuring that every one time is tracked and reported.
- The brand new Work Schedules feature in Time Doctor allows employers to create and edit work schedules within the Time Doctor app for more accurate reporting. This feature makes it easier for managers to trace schedule adherence, extra time, and hours worked outside of the traditional workweek from one centralized location. To learn more about how Work Schedules can prevent time, click here.
