witholding wages

Our payroll is driven by DAR's(daily activity reports 1 for each day worked) and nurses notes. The combination of the two tells us which visits the nurse/therapist has made,length of visit and outcome.

These notes and Dar's are to be turned on a daily basis(Medicare requires the nurses notes to be in the patient charts within 48 hours)

For payroll purposes all notes are due in our office by 12:00 noon on Payroll Monday.

We have sent out a memo stating that Dars and notes not received by the deadline will result in the paycheck bieng held until the next pay period. One employee has raised the legality of holding back paychecks,even though this employee repeatedly turns in paperwork late. Any help you can suggest in re-writing the memo of the legality of deferring the pay to the next period will be appreciated.

Comments

  • 15 Comments sorted by Votes Date Added
  • I think your employee is right. You can not hold paychecks, to my knowledge. You need to deal with your tardy clinicians by disciplining them. I feel for you. I know it can be a never ending battle.
  • Suzanne Jameson
    Human Resources Mgr.

    Thank you for your input.
  • The only time I've withheld a check is when a manager resigned and did not return company property, including a corp credit card. I discovered he had run up over $6,000 in charges on the card and had failed to pay them. Even though we had the card discontinued, I held onto his check until he returned the card because he continued to try to use it and was successful a couple of times.
  • You cannot withhold a payroll check as a disciplinary measure. I think the logic is that the employee is already worked the hours, so pay compensation belongs to the employee. If you have a payroll schedule where the payroll check is released on a regular, periodic basis (after the hours are worked), you owe the employee and must keep the compensation in place (barring any legal order or authorization from the EE to withhold pay). It can be a difficult situation, especially if you have no other means of estimating the employee's payroll check amount. Treat the late submissions as a performance issue and discipline accordingly. It could be costing your company a small fortune in labor to get manual checks printed in time for release. I don't think I'd propose this to my employer, but if your company pursues a method for estimating pay and correcting later, be fair, be as accurate as possible, put the method in writing in the form of a policy, and apply it consistently.
  • Now you can rewrite your memo and say, "Thanks for voicing your concern about the paychecks. Starting next Monday we are going to institute a disciplinary procedure for submitting late paperwork, due to Medicare requirements and your lack of following them. It starts with a written warning and ends with termination. Have a nice day." Of course that is what you want to say not what you should say.

    PS Welcome to the forum.
  • Suzanne Jameson
    Human Resources Mgr.

    I love your attitude. Thanks for the input.
    I just have a real problem with the payroll people having to work until 10 at night, because the field people can't find the time to do their paperwork on time.

    What I don't understand is that the Dar is for all purposes a "time sheet" If you don't have the time sheet, how do they expect us to pay them. If I have to take their word for the time worked, I am going to start telling every one that I work 100 hrs. a week.
  • Sounds to me like you have touched on two issues that your executive management staff should be very interested in addressing: 1)timesheets and 2) OT costs for payroll staff. Tweak the process and see if you can't get a better result.

    DOL expects your employer to keep track of work hours. A timesheet is a good mechanism and satisfies some of the DOL record keeping requirements. Separate the "timesheet" from the "DAR." Put submitting timesheets on the fast track--priority document. DARs can follow. You may have revenues attached to the DAR. Try to keep the DAR as a focus on that process. You have serious liability attached to the compensation aspect of your process.

    The tail is wagging the dog if your payroll folks are having to work until 10:00 p.m. to finish payroll because your process allows employees to submit their time records so late. You didn't say, but I'm presuming payroll starts their day at an expected business hour--8:00 to 9:00 a.m. If I were a payroll specialist working for your company and had that kind of work schedule to look forward to every payday, I'd be looking to do payroll for someone else, maybe someone who could manage the process differently and allow me to be home with my family long before 10:00 p.m. The situation seems to be being driven by the habits of a few rather than a management decision. What executive is going to like that?

    Morale must be an issue--hard feelings, bitterness, fatigue.

  • Suzanne Jameson
    Human Resources Mgr.

    Actually we have great morale here. Frustration yes, but in general we have great employees and a "team" attitude that makes us all glad to come to work. It is just that nurses have become very independent due to the extreme shortage in the country.

    Suzanne
  • While I agree that you cannot withhold an entire paycheck from an employee, can you pay them based on their scheduled time and make any adjustments on the following payroll following that up with discipline? In a former company we had the same problem with employees not getting their timesheets in in a timely manner. Since I knew that their basic schedule was 40 hours, they were paid accordingly and any adjustments were made on the following payroll. It only takes once, at the most twice, for a person NOT to get their OT pay right away to set them on the right track.
  • Suzanne Jameson
    Human Resources Mgr.

    That is an excellent idea, however our nurses are paid by the visit and until we get the "Dar" we don't know that the visit has actually been made. Also since there is a nationwide nursing shortage, higher management will complain but are hesitant to act. I am stuck between doing what I know will work and what I am allowed to do. At least I now know the legality of what I can't do. I threaten to beat them up on a regular basis, but I must not be very scary.
    Thank you for your reply.
  • I appreciate your situation. We also happen to have nurses on the payroll and have felt the nursing shortage crunch for quite some time. Employers who need nurses are almost legitimate in their fear of making them angry. A massive walk out could mean the end of business, and they are an independent sort when it comes to conforming to rules. We have a licensed long-term care facility, and keeping the license current depends on nursing staff to patient ratios dictated by the state. If ratios fall for one day, we have to close our doors to new admissions for 6 days. More than a couple of occurances within a few months is enough to lose the license to operate the facility.

    A prior employer of mine used to estimate wages and reserve the right to correct in the following pay period. You could truly be a hero if you can develop a mechanism for estimating a wage that is fair and fairly accurate. If your morale is already great, it could only get better, and life will get easier for you. There must be some level of tension between the nursing staff and others with the current process.

    Best wishes for a good solution!
  • Suzanne Jameson
    Human Resources Mgr.
    Thank You.
  • Linda was making a good point. You only have to pay the ee for the hours the emp/er knows the ee worked, w/o regard to documentation. I know this doesn't address the rest of your dilemma, a seeming inability to effect much behavior change because the nurse shortage is making it difficult to force thenm to cooperate. But, may be if you fail to pay for a few visits because you are not sure they were accomplished you will get their attention.
  • Suzanne Jameson
    Human Resources Mgr.

    Thank you for your input. It is an on going process. We value our employees and realize the amount of paperwork generated in home health. However we are trying not to sacrifice one department to satisify another Payroll vs Nursing.
  • I agree with the other posters that you should pay either for hours you know were worked or pay for 40 hours. I can guarantee you once or twice not getting the extra pay will cure them getting paperwork in late. It's not fair to ask payroll people to stay late because of failure to turn in paperwork.

    It's interesting about the nursing shortage. We have a very difficult time in our area recruiting nurses and the "prima donna" attitude shows itself from time to time.

    In fact, we just terminated a four year nurse because she decided that she was going to take off early even though her supervisor explicitly told her they were short staffed and she couldn't take off. She pulled another employee off her job to cover while she left. She didn't think anything would be done with her. The next day she was terminated as soon as she came in. Needless to say, she was absolutely shocked.

    The kicker is, of course, that she will probably be able to go somewhere else and get another job very easily...keeping it might be a problem especially if her behavior continues.
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