Late timecard no pay policy

Do any of you practice a no time card no pay until next payroll period policy? In other words, do you have a policy that specifically states payroll for hours worked is based on timesheets submitted by a certain time/day and additions/corrections/changes received after the specified date will be processed in the following payroll cycle. I know the law requires that we pay for hours worked within the timeframe on the designated pay period, but I'm not sure if there are any "gray" areas that allow an employer to hold the employee accountable for accurate and timely time cards/sheets (outside of the standard discipline policies), and was just wondering what your practices were.


Comments

  • 25 Comments sorted by Votes Date Added
  • You should call your Dept of Labor for clarification, however, as a general rule it's never a good idea to mess with wages. Yes, by all means you need to hold employees accountable, but you should be using your established disciplinary policies and procedures, which could include things like suspension without pay, or termination. As I said, perhaps in your state it's different, but I would get it in writing before withholding wages. Keep in mind that if the DOL has to come into your place of business because of complaints received by your employees they will look at EVERYTHING in your files because they want to make it worth their while, and trust me, they WILL find something.
  • Oh my/:) What timing- I am sitting here with over 50 time cards - I have made numerous phone calls to employee's who either did not clock correctly, or just did not bother to clock at all..I have had numerous discussions here with our COO regarding this same question. Can I hold back their pay until the next time period? He said "no", we have to follow disciplinary procedures. Maybe Don D. will weigh in and set us straight??
  • [font size="1" color="#FF0000"]LAST EDITED ON 07-26-04 AT 11:03AM (CST)[/font][br][br]Don D is an expert in most areas of HR and you can wait for him if you like. He'll confirm what Crout just posted, if that makes you feel better.

    I'm editing. It sounded a little terse and I didn't mean it that way. I have great respect for Don D. But you'll find many others on the forum with years of experience and sound advice.

    x:D
  • "Most areas", Sam? Are you trying to insult Don? I thought he was an expert in all areas. x;-)
  • Don just bought a new "Bulldog" cap. If you keep that up he'll not be able to get it on.
  • Not a problem, Popeye. I'm sure he bought one that is adjustable, just in case. And he will get even with me.
  • Don IS an expert at many things. Maybe I was being a little testy on Crout's behalf. I get p$#%@'d when I give sound advice then the person has to go somewhere else to confirm it.
  • Wow, Does Don's reputation really precede him by that much? or were you being light hearted and not putting down the rest of us formites?x}>

    Rest assured though, I am not going to lose any sleep over it either way it was intended.
  • "Wow, Does Don's reputation really precede him by that much? or were you being light hearted and not putting down the rest of us formites?"


    YIKES, no harm intended, truly....Go with the lighthearted plan, that was how it was intended to be taken-
  • Just a thought, my employer invested in timeclocks which my computer dials several times a day and collects swipes from employees. It then takes the data and puts it into the Internet and it is calculated then. Each supervisor has access to this website and can only view employees that report to them. They are responsible for okaying their time each payroll. This program then prints out a report for me to tell me how many hours they have worked. This is a great time saver for me. Has cut my processing time for payroll by half. ADP and Paychex offers this service.
  • If we don't receive a time card, we generally pay for a straight 40 hour workweek. If there was additional pay involved and this was not submitted, then the employee would have to wait until the next payday to get paid for this.

    A disciplinary would also be issued for failure to submit a proper time card, necessitating an extra burden on payroll.
  • We don't contact the ee with questions about thier time cards, we hold each Supervisor responsible for the time cards of their team. Our handbook states something to the effect of: In the event you should forget to clock in or out, or have other errors on your time card, please take your card to your Superivosr to have the error corrected. Only your Supervisor may make corrections to your time card. Your Supervisor must make and initial all changes to teh entries on the time card. Correction pay for hours which were not recorded properly will be made on the next regularly scheduled payroll period.
    This works very well for us, of course HR still catches a few time cards each week that are not correct so we contact the Supervisor and let them get to the bottom of the error and they correct same before we transmit payroll. It helps that we process time cards first thing every Monday and we do not transmit until Wednesday morning. This most always gives us plenty of time to get all errors corrected in time so that everyone is paid in full and on time.
    Happy Time Cards to you....
    Dutch2

  • I'm not familiar with any state that permits the employer to "hold" pay until the employee provides the needed clarification. Most states obligate the employer to make payment for those hours either worked, or reasonably believed to have been worked. Corrections can be made, but I seriously doubt if pay can be withheld or deferred. Making a reasonable estimate (maybe even a low estimate) might get the employee's attention, but to impose your own "teach 'em a lesson" will likely cause employee relations problems and at the very least a wage payment violation from your local wage and hour folks. Either the pay system isn't working properly or the supervisory review is pathetic..... I'd look there b/4 threatening to not pay people.
  • x:-) I see some acting like I'm often accused of acting. Are you welcoming a new poster or running one off? x:-)
  • No, I'm not trying to run anyone off. Welcome, Scorpio!! Don't let my impulsive reaction run you off. Sometimes I can be nice!

    Sam
  • Thanks Sam xhugs - I am too tired to run anywhere today though (payroll!!) I was probably just "crawling" away....
  • The bottom line is that you cannot fail to pay employees simply because they have not completed a time card or other required document or internal process. You must pay them for hours you reasonably know them to have worked. If they work standard work weeks and were there and you have no information to indicate they did not work that week, you must pay them.

    The issue of the unknown is different. If they claim to have worked odd or additional hours and the supervisor refutes it and you have no assurance that they did work the hours, you do not have to pay for the hours in the absence of some corroboration.

    If they were to produce a log of hours or some other backup and the supervisor were to say, "Hey, I'm not really sure," you'd be on the hook to pay them. Any disputed hours can be held over to the subsequent pay period while you investigate. And deletions, corrections, additions submitted after a drop-dead time can be paid the next cycle.

    This is just my opinion based on my particular experiences and understanding of the law, of course. And, subject to a variety of employer-unfriendly laws in various states. I'm certainly no lawyer.
  • DCHR9203: He is not a lawyer, but he is DAMN smart about our business. The FLSA is very clear, you must pay at least the standard work week identified by your company and the hours assumed as being 40 hours. If after investigated and approved by your supervisor then adjust up or down in the next week!

    Now, from your post, I sense that you have a supervisor problem verses an ee time card problem. You should get out of chaseing down ever "Tom, Dick, and Harry" to find out if they worked or even clocked. Your supervisors or Department managers should be collecting, calculating, and approving all time cards or time sheet entries for payment. We in HR are the record keeper of the time cards/time sheets, we are not the "time clock police", we review the time card calculations after the fact for accurate calculations and we research issues and concerns, but if someone who normally gets a pay check for 40 hours or 42 hours a week we will pay that or make contact with the supervisor/manager for a clarification. Without clarification we pay and correct later.


    Pork
  • >The FLSA is very
    >clear, you must pay at least the standard work
    >week identified by your company and the hours
    >assumed as being 40 hours. If after
    >investigated and approved by your supervisor
    >then adjust up or down in the next week!

    Pork, can you (or anyone) point me to the FLSA regs that state this? I've been looking but can't find it anywhere and could really use it right now. Thanks a million!
  • From my "hog" eared copy of Regulation: Part 785. Section 785.1 Intordutory statement:.............The amount of money an employee should receive cannot be determined without knowing the number of hours worked.

    This is the sentenced used by an auditor from our local friendly Wage and Hour folks with me sitting at her right arm, and "Audry" made me underline and hi-lite in yellow back in 1985, so I would never forget it. It was my friend Audry that led me to the understanding of the role of HR/payroll and getting employees paid. She explained that they are taught to jump on employee complaints and go forward and search out the company and train the leaders on appropriate payroll actions to stay out of trouble and to keep the "Audrys out of my hair". We have talked many times since and we have discussed my training opportunity and the fact that the law on FLSA has not changed. I quit chasing "Tom, Dick, and Harry" in 1985 and my HR life has been much easier since. By insuring everyone who works gets a paycheck each week or know why one did not helps to keep ees from picking up the telephone and calling "Audry" to get her to come down and whip-up on my old grey head. It is smart business and you know since whipping out my reference FLSA law copy and turning to a "hog" eared page hi-lited in yellow with any of my peers in any one of 5 different companies, I have not been challenged when I point the concerned ee to go and discuss his/her pay with the supervisor/manager. All have helped me to keep the work force at peace and are happy to have an HR with a helping solution to the issues. We pay now and fix next week when in doubt!

    Hope this helps you solve your concerns, it is there you just have to use the Bible to support your actions.

    PORK
  • I don't know but - I think you just made the issue all cloudy again with that diatribe.
  • Thanks! Arrearing errors in payroll on the following payroll period has been my practice until I joined this organization, which tends to jump at every employee complaint! I'm like, get a grip. Its ok to hold the employee accountable and guess what it only takes one time.

    Anyway, thanks again everyone!


  • Pork, you clouded it up for me again. You said, "From my "hog" eared copy of Regulation: Part 785. Section 785.1 Intordutory statement:.............The amount of money an employee should receive cannot be determined without knowing the number of hours worked. "

    To me that means that you don't have to pay them if you don't know what they worked. I can't determine what to pay them if I don't know if they worked 30 or 40 hours.

    I get the part about not raising any flags with DOL, but I can't find anything in the law that says, "you must pay even if you have no idea what to pay".

    Thanks,
  • I don't pretend to know your situation, but, if an employer's procedures are so 'loose' as to not accurately track hours worked and an employee insists that he worked a certain number of hours and has any substantiation at all, the DOL will rule in his favor. Substantiation may be concurrence of witness(es), his daily journal, contemporaneous notes or a statement from a supervisor which does not challenge the employee's assertion.

    Now, if you are in a rare situation of actually not being sure how many hours someone worked because no supervisor was on hand and no record was made by the company, as is required by law, and the employee cannot show evidence of having a certain number of hours, you would be allowed to pay wages for hours worked according to his standard work day or shift.

    The real danger in a loose system is that an employee can come along much later, produce logs or handwritten calendar notes and the employer cannot refute that....and the DOL requires that employer to pay back wages and can level stiff penalties.

    Can you tell us what it is about your system that resulted in your not knowing actual hours worked?
  • We have an on-line timekeeping system and the "rule" is that employees, both exempt and non-exempt complete it on a daily basis. We're a federal contractor with many direct contracts. Some of those contracts have one employee assigned at a remote site. Our policy requires all timesheets be completed, signed, and approved, all electronically, by COB each Friday. The problem is two-fold. We have a supervisor who is not disciplining (big surprise, huh?!), for late time sheet approval, and we have an employee who is consistently late and holding up payroll, and ultimately billing. We cannot be sure of hours worked as our customer may require OT on that Friday, etc, or the site observes a holiday that we do not and allows the employee to work (or not and must use leave). So there is some communication break down. In any event, the problem has reached top dog ears, and we're not happy labor reports are not accurate, thus holding not just payroll, but also billing. I talked with DOL and they tell me (what we already know of course) that for non-exempt, we are only expected to pay what we know they worked within the guidelines of our payroll processing policies and timelines. So, since its a non-exempt, I think we're covered for paying only what's on the timesheet, but wanted to see if there was any first-hand experience out there.
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