The DOL Has An App For That!

Wage and hour violation claims present employers with the risk of substantial liability. In 2010, a survey of more than 1,800 senior legal and HR professionals was conducted. Of those surveyed, one-third of the respondents indicated that their organization had been hit with a wage and hour claim in the past year. Such claims outnumber all other discrimination class actions combined. While statistics for 2009 and 2010 aren't available on the Wage and Hour website (or I just can't find them!), the 2008 statistics reflect that $185,287,827 in back wages were collected in 2008 alone. That's $185 Million!!!

On May 9th, the Wage and Hour Division of the DOL launched its first application for smartphone platforms. The app (DOL-Timesheet App) is a new electronic timesheet that allows employees to track the hours they work (in addition to break time, calculating overtime, etc.) as well as assist employees in determining the wages they are owed. The bonus here is that it's a free app for employees and is available in either English or Spanish versions! (You can download the application from the Wage and Hour Division homepage at http://www.dol.gov/whd. While currently only available for iPhone and iPod Touch, the DOL is exploring updates for other smartphone platforms such as Blackberry and Android.

The DOL stated that the intent of the app is to provide workers with a tool that they can use to obtain wages they feel they are owed. "This app will help empower workers to understand and stand up for their rights when employees are denied their hard-earned pay," explained Labor Secretary Hilda Solis.

Yes, the application is a simple time-tracking tool. But, it has potentially dangerous consequence s for employers that do not have a reliable or accurate time-recording system in place. I can only stress how important it is for any employer to ensure that they have consistency, and accuracy, in their timekeeping mechanisms. For the employer, let's look at some potential areas of concern:

• How can an employer tell if a non-exempt employee is really working even though the person is not officially on the clock? Employers must be educated on what time must be counted as "hours worked" under the FLSA (including, but not limited to, compensable travel time, donning/doffing uniforms and/or safety equipment) so that such time is properly captured.
• Non-exempt personnel using smartphones or other PDAs for work-related purposes while off the clock.
• Employees may not know the proper way to round time if such rounding is applicable.
• What steps can the employer take when the non-exempt employee works unapproved overtime?
• Potential liabilities for back wages (and those nasty penalties) if employer calculations for worked time and/or over-time are incorrect.
• Employee records and payroll records don't match. How can the employer confirm that the employee was actually at that site and working?

There is a school of thought that the DOL timesheet app may encourage wage and hour disputes. My thoughts?

• Employers must always ensure that their timekeeping records are accurate.
• Require that employees verify the accuracy of time records used for payroll purposes.
• Take this a step further and ensure that employees sign off on any changes to timekeeping records made by their supervisors.
• Ensure that your managers are trained to enforce clear timekeeping policies.
• Most importantly, have an internal mechanism for addressing any pay questions.