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When businesses run afoul of labor laws, the fines can be astronomical. Last year, Walt Disney Co. reached an agreement with the Department of Labor (DOL) to pay out $3.8 million to 16,339 employees. The DOL’s Wage and Hour Division determined that Florida-based Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc. failed to observe the the Fair Labor Standards Act overtime, minimum wage, and record keeping regulations. This is why accurate timekeeping is important.
Do you employ hourly staff members? Are you in compliance with all DOL regulations? DOL officials say that the illegal Disney practices are fairly widespread.
These were some of Disney’s specific violations:
- Failure to pay employees for required pre-shift duties
- Failure to pay employees for required post-shift duties
- Allowing an employee’s hourly rate to temporarily fall below minimum wage because of a nonelective paycheck deduction for uniform expenses
Even a Couple Minutes Count
Keep in mind that the pre- or post-shift assignments for the Disney employees could have only taken a couple minutes. If a staff member is supposed to change into a uniform (or costume in the Disney case) before their scheduled shift, they must be paid for this time. Do you require your team members to get their workstations ready, or perform other duties before their designated shift start times?
Are You Prepared for an Audit?
If you are using pen and paper time and attendance systems, it’s almost impossible to accurately track employee hours. Automated timekeeping, however, solves your compliance headaches by:
- Tracking employee time to the minute
- Allowing easy clock in/out for offsite employees
- Automatically creating audit-ready reports
Because our system is fully integrated, you won’t have any troubles getting all of your time and attendance, scheduling, and payroll data synced together correctly.
Get a free demo and learn how our automated timekeeping solutions can help you avoid the expenses of a labor audit.
