Thanks John. Welcome to our webinar in our Compliance Series “How to Avoid Costly Wage & Hour Pitfalls for Construction, Engineering & Landscaping Employers” presented by EPAY Systems. My name is Michelle Lanter Smith. I am the Chief Marketing Officer here at EPAY Systems.I’d like to extend a warm welcome to all of you on the line with us today. We have over __ people joining us . . . From across the nation. As construction, engineering, and landscaping firms, all of you have a couple things in common –You all face a challenging, complex labor environment – one where you workers are distributed across many locations – making it difficult for consistent management policies and proceduresManaging compliance issues – such as Overtime pay, meal breaks, employee travel . . . is a real concern. And because of your distributed workforce, it’s even harder to manage.
Well, that’s where EPAY comes in. EPAY is in the time and labor management business. And we specialize in dealing with companies that have very complex and distributed labor environments. Our organization understands all of the challenges and limitations a company with employees scattered everywhere deals with as it relates to deploying new technology in the field, as well as managing and tracking it’s labor force.Distributed labor can present many challenges. Yet, labor is probably your largest cost.Complex pay rules, shift differentials, employees working one task in the morning and a different one in the afternoon. Employees working at customer sites or moving from job to job.These are tough for most time and attendance systems. But not for us. Our uniquely flexible pay rules engine can handle complex union rules and state regulations, not to mention your own complexities because of the nature of your business.Our web-based system, Blueforce, drives two main benefits for our clients:We help them reduce their total labor costs by more than 5%We help them lower their overall risk in facing compliancy issues – we have a built-in compliance orientated features . . . Right in our system
And speaking of compliance, it’s not something to be overlooked in today’s labor environment.Federal court filings of wage and hour class and collective actions have increased more than 500% since 2000.The Department of Labor (DOL) recently increased its investigative staff by 40% to crack down on non-compliant.Indeed, the vast majority of class and collective actions filed in state and federal courts continue to be wage-hour cases. And when they do coming knocking on your door, it’s expensive.The average reported settlement is $8.5 million per case, with a per plaintiff average of $5,600. Allegations run the gamut—unpaid overtime; off-the-clock-work; misclassification of exemption status; missed short or late meals and breaks; unpaid donning and doffing time; failure to pay minimum wage, and improper tip pooling. Could you be at RISK?Probably most of you on the line, would say “most definitely”That’s why today, I’m thrilled to introduce to you our guest speakers from Seyfarth Shaw for today’s webinar on compliance. They really do have the Best Tips for Staying out of Trouble.Seyfarth Shaw’s defense of employers in wage and hour litigation has become one of the hallmarks of the firm’s nationally recognized employment law practice. Its Wage & Hour litigation practice group consists of more than 80 attorneys in offices across the country. They have litigated hundreds of complex wage and hour cases in nearly every federal jurisdiction and in courts of almost every state, as well as before administrative agencies and on a multi-jurisdictional basis.Today we are fortunate to have two of the firms prominent partners in the wage and hour space, Rebecca Bromet and Kyle Petersen.
Kyle Petersen is a member of Seyfarth Shaw LLP’s Labor and Employment Department. She litigates all manner of employment disputes on behalf of employers throughout the country. As a member of the Firm’s Wage & Hour Litigation practice group, Ms. Petersen devotes a significant portion of her practice to representing employers across the United States in court litigation and administrative matters arising under federal and state wage and hour laws, and is a chapter author of the definitive treatise on wage and hour litigation, Wage & Hour Collective and Class Litigation. Kyle’s work on behalf of employers has been recognized by Illinois Super Lawyers, which has named her an Illinois Rising Star (2008-2011).Rebecca Pratt Bromet is a partner in the Labor and Employment Department – also residing in Seyfarth Shaw's Chicago office. Rebecca’s wage and hour practice focuses on defending employers across the country in administrative matters and in collective, class, and individual actions under the Fair Labor Standards Act and state laws in federal and state courts. She frequently speaks at seminars and conferences on all human resources issues, especially wage and hour matters. Rebeccaauthored the Illinois Employer's Guide to Wage and Hour Laws, published by the Illinois Chamber of Commerce (2011). She also contributes to publications such as the Fair Labor Standards Act: Cumulative Supplement, ABA Section of Labor and Employment Law (2006-2012), the Seyfarth Shaw Class Action Report, and Diversity Executive Magazine. Rebecca is a member of the ABA Fair Labor Standards Legislative Committee. Welcome Kyle and Rebecca! Thanks for joining us today.
Now I’m sure many of you are going to have questions for Rebecca and Kyle today. If you have one, simply type it in the Question box in bottom right section of your screen. We’ll be monitoring the questions and Noah and Rebecca will attempt to answer your questions throughout their presentation.So let’s get started . . .Rebecca, let me turn it over to you to discuss some of the trends you’re seeing in wage and hour litigation.
In 2010 -$1.5 Million – Cemex (unpaid overtime to 1,705 cement truck drivers)$106,818 – Turf Specialities (misclassification, uniform deductions, deductions for broken equipment)
Low-wage/high risk industries – high violation with low complaint rates, such as janitorial, construction, and hotel/motel industries.Fissured industries – rely on a wide variety of organizational methods, such as sub-contracting, third-party management, franchising, and independent contractors.“In a typical year, over 35,000 workers contact the Wage and Hour Division for help, including the 25,000 who need assistance with their minimum wage, overtime, or family medical leave claims –and this number does not even include many more workers who do not contact us after their rights have been violated. Although the Wage and Hour Division is able to help the vast majority of these workers recover denied wages or lost jobs through conciliation, settlement, or, with the Solicitor of Labor, litigation, every year there are thousands of workers whose claims we cannot resolve because of limited capacity. Thanks to an unprecedented collaboration between the Wage and Hour Division and the American Bar Association Standing Committee on Lawyer Referral and Information Service (ABA LRIS), the Wage and Hour Division will now connect these workers to a local referral service that will, in turn, provide the workers with access to attorneys who may be able to help. This collaboration will both provide workers a better opportunity to seek redress for FLSA and FMLA violations and help level the playing field for employers who want to do the right thing.” BRIDGE TO JUSTICE: Wage and Hour Connects Workers To New ABA-Approved Attorney Referral System,‖ http://www.dol.gov/whd/resources/ABAReferralPolicy.htm.Id.
Wow – what a lot of great information you’ve given us in such a short time. Now if you have question for Rebecca or Kyle, just let us know. We’ll see a short survey when you close out today’s session. Just let us know and we’ll try to help get your question answered.I’d like to wrap up our time together today with a few words on EPAY and how we address your compliance needs.
Since 2001, EPAY has delivered innovative, efficient and effective solutions to address our clients critical time and labor management issues.Our client base is very diverse – serving some of the largest in Janitorial,Building Maintenance – Healthcare –– Security –– Foodservice – and Hospitality. You’ll see our clocks in some of the largest retailers, public sporting venues, and airports in the nation.One of the central themes we hear from our clients is that we can mirror the operating environment. Specifically we can handle all the various payroll permutations to ensure accuracy and compliancy for their organization. The flexibility of Blueforce is built-in; we meet our customers’ business needs without upfront custom costs.
Upon the implementation of our system, EPAY’s clients see an immediate Return on Investment, through the reduction of the following exposures.Elimination of buddy of punchingEliminate erroneous pay calculations,human error, and time roundingReduce payroll administration and distribution time associated with pay checks and pay stubsBy utilizing our advanced functionality the 5% reduction in Labor can climb to 9%.An example of this would be our real time alerts which can reduce overtime exposure and keep you on budget
Time and Wage cases in 2012 have surpassed discrimination cases for the most litigated exposure facing corporations. EPAY provides many features and reports that help mitigate exposure and provides access to historical data to dispute labor audit claims.Audit Trails – Changing an employee’s timecard without his/her approval is a surprisingly common FLSA violation. Blueforce flags all unapproved changes, so managers can address them before they become issues. Overtime - Calculating overtime properly is a huge litigation concern for employers. Blueforce tracks work time to the minute and automatically notes when an employee reaches overtime. Better yet, it can even alert managers before an employee hits the OT threshold. Meal Breaks – Improperly tracking or enforcing required meal breaks are another corporate Achilles’ heel. Blueforce asks employees if they’ve taken their proper meal breaks, advises you of deviations, and can even generate real-time alerts when a meal break is missed. Pay Differentials – When a single employee is paid varying hourly rates, depending on shift or task, it can create headaches for your payroll staff. Because we ‘configure’ your pay differentials into Blueforce at the outset, it accurately calculates employee pay effortlessly. Privacy and Security - Our time-tracking system keeps you in complete compliance with the Sarbanes-Oxley Act, which protects employees’ confidential information. We can even provide you with documented proof that your employees and managers only have access to what they should. Workplace Safety – We know on-the-job injuries are a real concern and that Workers’ Compensation claims are a very real expense. That’s why we’ve built a rather unique safeguard into our punch-out procedure. At the end of each shift, employees are asked if they had a “safe day.” The benefits are two-fold: 1) if an accident occurs, you’re instantly in the loop, and 2) if a questionable claim is made later, you have some documentation of your own.
EPAY has provided solutions to the most complex labor environments, encompassing hundreds of collective bargaining agreements.ABM Industries – 110,000, across 6500 sitesHealthcare Services Group 30,000 eeacroos 3,000 sitesCompass Group – 20,000 across 2500 sites Crothall - 16,000 eeUnicco - 16,000 eeKBS – 15,000 ee
In working with our clients EPAY has understood the importance of mirroring our clients environment and making our system as user friendly as possible.Upon the tabulation of punch data, EPAY’s pay rules engine allows our system to compute gross payroll regardless of the complexity of the clients pay rule. Our competitors struggle with this development and often time costs their clients hundreds of thousands of dollars in professional services fees.Understanding the challenges that end users face in remote environments, EPAY has developed various forms of data collections methods that ensure two things for our clients:There will always be a way for us to collect and transmit data (Wireless, LAN, WiFi, DialUp)NEXT SLIDE . . .
Wage and hour cases continue to be a source of potential liability for employers. Indeed, the vast majority of class and collective actions filed in state and federal courts continue to be wage-hour cases. Additionally, the Department of Labor has hired more investigators and continues to aggressively investigate company’s wage-hour practices. Companies hit with these cases may face significant exposure and, even if their policies are lawful, defending a class or collective action can cost hundreds of thousands of dollars, if not more. As a result, it is critical for a company facing a lawsuit to quickly assess its risks and determine its litigation “goals.” Even if not currently facing a lawsuit, a company should take measures to avoid litigation and to minimize its legal risks. To do so, companies need to keep abreast of changes in the law and litigation trends. Wage-hour law continues to develop and change, and these developments may impact your organization or industry.
That’s all the time we have today. Thank you to all of you for joining us today. We’d like to be your time and labor management provider. At EPAY, we’re IN TIME WITH YOU.Until next time, then, have a wonderful rest of your day. Good-bye.
How to Avoid Costly Wage and Hour Pitfalls for Staffing and Security Employers
Aggressive outreach efforts to identify potential plaintiffs
o Outside companies sending email blasts to
employees of target companies
o Ads on Facebook, Twitter
7064 lawsuits filed under the Fair Labor Standards Act
(“FLSA”) in 2012
o Record high number
o State wage-and-hour actions raise this number
o Of all state and federal class or collective actions filed
in the U.S., vast majority are wage and hour claims
Michelle Lanter Smith
Chief Marketing Officer
EPAY Systems, Inc.
EPAY -- In Time with You
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Compliance Webinar Series with Seyfarth Shaw LLP
Preparing for the Affordable Care Act (ObamaCare).
May 22: 12:00 cst
Reduce Costs with Pay Cards. June 19: 10:00cst
California Wage & Hour Labor Law--Avoiding Common Pitfalls
with a Distributed Workforce. June 26: 12:00 cst
How to Avoid Costly Wage & Hour Pitfalls for Healthcare
Employers with a Distributed Workforce. Sept 25: 12:00 cst
How to Avoid Costly Wage & Hour Pitfalls for Employers in the
Hospitality Industry. Nov 6: 12:00 cst
Register at www.EPAYsystems.com