The Fair Labor Standards Act (FLSA), also known as the Wage and Hours Bill, sets requirements for federal minimum wage, overtime pay, and employers’ recordkeeping responsibilities, in addition to setting youth employment standards.
The FLSA mandates a federal minimum wage of $7.25 per hour (as of July 2009), and though minimum wage requirements may be higher in different states, no minimum wage may be set below the federal standard. Additionally, employers are required to pay at least 1½ times an employee’s regular rate of pay for any and all hours worked over 40 in a workweek, unless that employee is exempt. To ensure these obligations are met, FLSA also requires employers to keep a record for each non-exempt worker that includes:
- The time and day of the week when the employee's workweek begins
- Hours worked each day
- Total hours worked each workweek
- Basis on which employee's wages are paid (hourly, weekly, etc.)
- Regular hourly pay rate
- Total overtime earnings for the workweek
- All additions to or deductions from the employee's wages
- Total wages paid each pay period
- Date of payment and the pay period covered by the payment
Employers can help maintain compliance with FLSA regulations by developing timekeeping policies, break and lunch hour policies, and training employees on timekeeping policy and procedure. It is advised that employers document any changes to the employees’ workweek, basis on which wages are paid (hourly, weekly, etc.), or policies on timekeeping practices. Whenever changes are made, it is important that the employer receive confirmation from employees that the documentation noting the change has been received and understood. This step can be daunting, as it can require handling quite a bit of paperwork.
How DocRead can help
DocRead is compliance software that works within SharePoint 2007 and 2010 to distribute policies, procedures, trainings and other documentation to specific user groups. DocRead provides a simple and efficient means of distributing compliance documentation and certifying that it has been read and understood by users.
DocRead ensures that your documents are distributed to all applicable employees and creates a paperless way to demonstrate FLSA compliance.
After distributing your compliance document to a group of selected employees, each employee will be required to read the document and certify that they understand the policy. They must check the 'I agree' box and then click the 'confirm' button.
The certification message the employee must agree to is fully configurable by your organization, so you can tailor the message to meet your specific requirements.
Once employees have acknowledged their acceptance of the policy, they receive a time-stamped reading receipt that they may download or print for their records. Time-stamped reading receipts are also securely stored in a central database, allowing quick access in case of audit or document request.
DocRead also provides you with reading reports that can be used to monitor the progress of policy acceptance, clearly showing how many policies have been assigned, completed or are overdue.