In remote work, employer responsibility has become crucial in maintaining legal compliance, especially concerning wage and hour tracking. Recent guidance from the Department of Labor (DOL) sheds light on these responsibilities, offering crucial insights for managing remote employees effectively.
Here’s a summary of the key points every employer should consider to ensure compliance and safeguard their organization.
DOL Guidance on Tracking Remote Employees’ Hours
The DOL emphasizes that employer responsibility includes diligently tracking all time worked by remote employees. According to the updated guidance from February 2023, employers are responsible for recording every moment between an employee’s first and last principal activity. This thorough approach ensures that employees are compensated for their entire workday, including essential break times.
Comprehensive Payment for All Work Time
The DOL’s guidance underscores the employer responsibility to compensate employees for all time between their initial and final principal work activities. This includes not only productive work hours but also any brief breaks taken throughout the day. For instance, if an employee’s day includes time spent on short breaks or other necessary activities like expressing breast milk, all these periods must be accounted for in their compensation.
Effective Communication with Time Clock System Providers
To ensure precise tracking of work hours, employer responsibility involves establishing and maintaining clear communication with time clock system providers. This means verifying that the systems are capable of accurately capturing all required time data. Regular system updates and audits are essential to identify and resolve any discrepancies promptly, thereby preventing compliance issues.
Contingency Plans for System Failures
Having a contingency plan in place is an essential part of employer responsibility for addressing unexpected failures in time-tracking systems. Employers should prepare alternative methods for recording employee hours, such as manual tracking or backup digital systems. This preparation helps ensure that work hours are consistently recorded and compliant, even during technical disruptions.
Regular Audits of Pay Stub Information
Another critical aspect of employer responsibility is conducting routine audits of pay stub information to ensure accuracy across different jurisdictions. Pay stubs must reflect correct hours worked, appropriate deductions, and other relevant information as per state or local laws. Detailed and jurisdiction-specific record-keeping is crucial for avoiding legal liabilities and maintaining compliance during audits or disputes.
Investing in these practices not only ensures legal compliance but also builds trust and integrity within the workforce. Employers who prioritize these responsibilities demonstrate a commitment to fair labor standards and the well-being of their employees, paving the way for a productive and legally compliant remote work environment.
Read our latest blog “Labor & Employment Law for In-House Counsel: Top 10 Wage & Hour Mistakes for Employers” to learn more about the common mistakes of employers.
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