How Time Card Errors are Costing You Money

Wage and labor laws are always changing, and businesses need to adjust and adapt in order to comply with law changes and keep growing. When businesses violate labor laws, the fines can be astronomical. The following case study is an example of how time card errors are costing you money.

Bobbi Best owns Blondies’ Bistro in Grants Pass, Oregon. In December 2015, a man named Martin Robinson applied for a cook’s position. In the restaurant industry, it is routine for job applicants to exhibit cooking prowess in a “working interview.” As Best had routinely done with previous job candidates, she asked Robinson to sign a waiver in which he submitted to an unpaid working interview.

Signed Waivers of Acceptance Don’t Supersede Labor Regulations

Evidently, Best did not know that Oregon labor laws call for payment of at least minimum wage for time spent in working interviews. At minimum wage, the working interview would have earned Robinson about $30. The following day, Robinson worked a standard shift but then rejected the job in a text message to Best. Best paid him approximately $60 for the regular shift.

Ignoring It Won’t Make It Go Away

Robinson took Best to court where she was ordered to pay a fine for the breach. Best didn’t pay the initial fine which compounded to $4,400 in the early spring of 2016. As of October 31, 2016, she had paid over $13,000 in legal fees but still owed over $21,000 to Robinson and his lawyer.

There are several lessons to be learned from this story:

1. Employers need to keep accurate, comprehensive records to protect themselves in case of a labor dispute. Accurately track employee hours for working interviews, training, and regular shifts. Customize settings to reflect state and industry-specific laws.
2. Be aware that a or employee may exploit even a small infraction. Labor courts almost always favor the staff member, even if they act swiftly to make amends.
3. Gain a comprehensive understanding of state and federal labor standards, comply with them, and keep up with changes.
4. In the unfortunate event that you are fined, pay right away before late penalties build up.

Are You at Risk?

If you’re manually tracking employee time or using a third-party solution to manage your time and attendance, you are at risk for compliance errors like this one. See what a difference our human capital management solution can make. isolved®  fully integrates with the other features, which means no more exporting, importing, or duplicate data entry. All of your time-tracking needs are managed right within the system. Request a free quote.

Source: Based on an October 31, 2016 story written by Jeff Duewel for the Grants Pass Daily Courier, republished by the Medford, Oregon-based Mail Tribune. Jeff Duewel, “Working interview turns into nightmare for Grants Pass Bistro,” Mail Tribune, October 31, 2016, http://www.mailtribune.com/news/20161031/working-interview-turns-into-nightmare-for-grants-pass-bistro