Mitigating Risks and Ensuring Compliance


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Wage and hour lawsuits pose a real, growing threat for employers. Employers with a distributed workforce are especially vulnerable, because compliance is especially challenging in complex labor environments. Consider these facts:

◾Federal court filings of wage and hour class and collective actions have increased more than 500% since 2000.
◾The Department of Labor continues to aggressively investigate employers for compliance violations and assess penalties and sanctions, specifically targeting low wage/high risk industries. In fact, it’s increased its investigative staff by nearly a third in the last five years.
◾Plaintiffs’ law firms are actively pursuing wage and hour litigation, too, targeting industries and even specific companies and soliciting their employees via social media.
◾Litigation-wise, the average reported settlement is $8.5 million per case, and the average per plaintiff payout is $5,600, according to the most recent report by NERA Economic Consulting1.

But there is good news. Improve your compliance, and you’ll reduce your compliance risk. EPAY’s automated time and attendance system features built-in compliance safeguards to help you do just that.

How does it work? Our flexible time and attendance system allows you to ‘factor in’ all applicable wage and hour rules, including federal, state, and local labor laws, industry regulations, and even union contracts. From there, advanced management tools—including violation flagging features, audit reports, and real-time alerts—will help you stay on track.

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  • This level of traceability and access is unprecedented. It allows you to have your finger on the pulse of your business.Transparent payroll figures allows employee and manager to view the same data at the same time so in many cases, variances or discrepancies can be addressed collaboratively.
  • Implement corrective action policies and process throughout entire organization for compliance consistencies. Variances in interdepartmental policies can also open company to risk.
  • Mitigating Risks and Ensuring Compliance

    1. 1. Mitigating Risks and Ensuring Compliance Jay Kalantar Chief Operating Officer EPAY Systems, Inc. 877-800-3729 x9020
    2. 2. Paper Payroll Process Employees Timesheet Clock Card Field Manager (weekly/biweekly ) Mon 8 REG 04:01 08:03 Tue 7.5 REG 12:10 14:05 Wed 8 REG Wed 1 OT Fax/mail Approved Timesheet Mon 8 REG Tue 7.5 REG Wed 8 REG Wed 1 OT Area Manager BUDGET Payroll 877-800-3729 x9020
    3. 3. Paper Payroll Process Employees Timesheet Clock Card Field Manager (weekly/biweekly) 04:01 08:03 Mon 8 REG Tue 7.5 REG 12:10 14:05 Wed 8 REG Wed 1 OT Fax/mail Approved Timesheet Mon 8 REG Tue 7.5 REG Wed 8 REG Wed 1 OT Area Manager BUDGET Payroll 877-800-3729 x9020
    4. 4. Electronic Payroll Process Crew arrives for work and punches IN to work Timeclock vs. punch device 1. 5. Supervisor Worker Crew performs his/her activities 2. 6. Crew punches OUT from leaves 7. Management tracks operational performance and tries to identify risk and gaps to improve performance Exec Worker Supervisor reviews attendance and responds Crew’s actions 4. Payroll reviews and approves payroll. Payroll is processed and employees are paid Payroll Worker 3. On payroll day, Supervisor reviews crew’s timesheets and send them to payroll 8. When someone’s attention is needed the system sends alerts and notifications. Supervisor 877-800-3729 x9020
    5. 5. The Digital “Paper” Trail • • • • • Payroll technology starts a digital “paper” trail – capturing payroll activity and creates “data DNA” Employee payroll activities are readily accessible as well as transparent Data can be pulled in real-time and helps identify root causes of issues with compliance The data can reveal certain employee behavior and trends – e.g. missing meal breaks, tardiness, etc. Using data analytics, employers can identify the key drivers for improvements. Paper payroll process is prone to errors and creates higher risk. 877-800-3729 x9020
    6. 6. Flagging Risk • • Use “data DNA” to identify risk through trends in employee or/and management behavior. Reports can find signatures of potential issues. For example: o How large is the variance between rounded and actual hours? o How often are employee hours altered? o What events trigger these alterations? • Work with your payroll partner to set benchmarks (e.g. % of punch alterations, % overtime) 877-800-3729 x9020
    7. 7. Setting Corrective Action • • • • The key to reducing exposure is by systematically addressing identified risk behavior – implementing compliance control. Effective compliance control means proactively resolving all deviations and documenting the action taken, creating audit trails. Proactively following a corrective action plans to ensure that issues will not fall through the cracks. For effective compliance management, businesses must implement corrective processes across the organization. 877-800-3729 x9020
    8. 8. About EPAY Systems • • EPAY Systems is a leading provider for Time and Labor management, specializing in solutions for corporations with a distributed workforce. Our compliance-centric products collect, manage and process employee payroll data via web, timeclocks, phone and mobile devices. 877-800-3729 x9020