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saypoint
09-22-2013, 04:37 PM
Sorry this is so long, but I was caught off guard by this issue.

We're having a problem with timekeeping and payroll.
Background: small company, manufacturing/assembly, 5-6 employees mostly low wage labor, somewhat informal and flexible work environment (which will have to change, apparently).

A couple of new employees, one only hired a week ago, suddenly noticed that when the time clock added up the 2-3 minutes they were early punching in or out at the start of the shift and lunch time, they went over 40 hours. Two minutes on each punch x 4 punches per day = 8 minutes x 5 days = 40 minutes. They said they had to be paid overtime, or allowed to leave early. They know they are supposed to work from 7:30 to 4:00 with a 30 minute unpaid lunch and two paid breaks.

When we told them it didn't work this way and that overtime had to be authorized in advance, one of them, the new guy, dug his heels in and said it was the law. this is the same guy who leaves the work area to use the bathroom ten minutes before break, then comes back and goes on break.

I looked everywhere on the CT DOL website and online for articles and posts, but all I found was that employees have to be paid for every minute they work, and if it goes over 40 it's overtime (which I knew). I also read that the only way to deal with this is to have a policy that states that early and late punches are not allowed and would result in disciplinary action. Honestly, I have NEVER seen anyone expect to be paid for those couple of minutes in my life.

Anyway, I checked the manual for our time clock, and found I could program it to allow a "grace period" of 2 minutes before punching in and 3 minutes after punching out. It would show the exact time of the punch, but would calculate the running total based on rounding up or down to the nearest 5 minute mark. I made the changes and am looking forward to seeing all of those happy faces on Monday morning.

Is this legal? I want to explain it to them in a way that doesn't cause any confusion or bad feelings.
I'm guessing there is nothing you can do about the excessive bathroom trips? Honestly, if he has to go, he has to go, but minutes before break time? Every time?

Thanks
Saypoint

Steve B
09-22-2013, 06:11 PM
Yes - what you are doing is legal as long as it is done with a reasonable intention. For instance, you should state the new time clock situation and make it clear they can punch in a few minutes early or late to prevent lines at the time clock. You can also state they are not allowed to start working until the the actual start time and thay they must stop working at the end of the shift. It's all a bit silly when anyone takes something like this to the extreme.

Fulcrum
09-23-2013, 08:41 PM
It sounds like the new guy is under the impression that all manufacturers, union or not, are run the same way. Many large union shops pay overtime after 8 hours per day, but this was a negotiated contract point, not law. Like you confirmed through research, most laws state that overtime doesn't start until after 40 hours (or 44 in some provinces of Canada) have been worked.

I have been on both sides of this issue before - specifically when rounding the punch in/out time. When I worked for my parents, farm service and concrete rounding was done to the nearest quarter hour. Most of the time this balanced out, but there were a few who tried to abuse it but after a little chat everything was sorted out and it became a non issue. There was also the other extreme, when I made carbide tooling, when the company rounded up to the nearest half hour at the start of a shift and then rounded down to the nearest half hour at the end of a shift. There was a quick end to this practice a few months after I started.

As to the bathroom break shortly before a scheduled break, is there a lineup for the bathroom at break time? Does he possibly have a medical issue that might need to be looked at? In the case of the former, is there a way to stagger break times to minimize the wait time at the bathroom? If it's the latter, could you suggest, out of concern for his health, that he see a doctor about possible health issues as to why he can't hold it for another 10 min (this is of course not taking into account the occasional time we've all had that "get out of my way or I'm not gonna make it" moment)?

nealrm
09-24-2013, 12:47 PM
I don't think you have a timecard issue, but instead have an employee issue. I think the answer is easy - include the 40 minutes in his termination check. Trust me, the issues you have with these employee will not be limited to a few minutes of overtime. Drop them now.

Freelancier
09-24-2013, 01:40 PM
I am with @nealrm on this one... I think this is a trust issue you're already having with the employees, so you need to pay the overtime (if that's indeed what you're state's labor department tells you to do and you can call them and ask instead of hunting around on their web site) and then look to either re-educate them or replace them.

I also like the idea of splitting up the break times into multiple shifts, so that people aren't standing around while everything comes to a standstill.

Finally, I'd say you may also have a management issue, because although a lot of union shops have a lot of rules, you're 5-6 employees, which isn't big enough to get all rule-crazy provided everyone is holding up their end of the employment bargain. If they're not, then replace them, but in the meantime, give every person an overtime policy (even if it means they stand there at the punch clock until it's time to come inside) and let them do their job to the best of their ability (including non-scheduled breaks as long as production doesn't fall behind) and then replace the ones who just don't have the abilities you want. In other words, manage to your goals, not to the employees' time.

Steve B
09-25-2013, 06:34 AM
Sorry - but retaliation for an employee pointing out a possible violation of the FLSA would be a HUGE mistake. Even if you weren't wrong with the initial issue, you will be wrong for the retaliation.

nealrm
09-25-2013, 03:42 PM
You wouldn't fire them for pointing out the issue, you would be firing them for unauthorized overtime, taking breaks out of schedule, and poor attitude. Based on dealing with that type of employee over 20 years, it shouldn't be too hard to find examples of subpar work. If they are still under the 90 day mark, you can generally fire them at will. (State dependent)

But Steve does have a point. You need to make sure you have documented why you fired them. First I would start with disciplinary action for the unauthorized overtime and unauthorized breaks. Include in that a form stating that unauthorized overtime and breaks are a termination offense. Have them sign it. Then the next time they do it, you have documentation they know they are not allowed to clock in early and can fire them.

Steve B
09-26-2013, 07:14 AM
The 90 day issue is more of a union thing and unrelated to "at-will" employment states. At will employment applies to their entire career, not just the first 90 days. It simply means you can fire someone for a good reason, a bad reason, or no reason ... as long as it isn't an illegal reason. Retaliation for reporting a possible violation of a federal or state law is an illegal reason for termination.

Having clear policies that are uniformly enforced are always a good idea. But, deciding to create and strictly enforce such policies shortly after an employee complains about you is going to be a bit suspect, especially, if the reporting employee just happens to be the first victim of the new strict policy. Of course, if the best employee works any unauthorized overtime - he or she will have to be terminated also.