Managers ignore workers illegal ‘punch-out’ because they are not accurate ways of measuring workers time in the business. Second, they avoid blames and lawsuits from employees due to lower and inappropriate payments. Third, they have to submit records that match with requirements of FLSA. The essay discusses that illegal punch-out system are inaccurate measures of time taken at work places.
According to SHRM, employers use Punch-out system to track working time among employees. Employees are directed to punch a time clock to record attendance patterns, maintain safety and security of workers inside the organization. Employers ignore illegal punch-out system to avoid blames that they pay their workers hourly and not monthly salaries. Salaried employees should not miss payments on basis of the punch-out system. The fair Labor Standards Act (FLSA) states that employers track working hours per employee. As a result they have a responsibility of ensuring that records reflect time that employees have worked. Thus, employers ignore any illegal punch out system because they have to submit records that match with requirements of FLSA.
Employers ignore illegal ‘punch-out’ system to avoid wage and hour lawsuit such as claims that employers are failing to pay for total hours worked for. Employers following the punch-out system may be misled to pay less and be liable to pay for damages, back pay, attorney fees, criminal and civil penalties under federal and state laws. Employers ignore the punch-out system and personally supervise employees to ensure that time records are genuine. The practice minimizes liability during an audit from the department of labor.
Employers ignore illegal punch-out system because they lack well-developed policies and procedures for employees to follow. They do not communicate proactively with employees and are not present to monitor those policies and procedures of punching out are followed. Most companies do not evaluate circumstance related to FSLA Rules and regulations.
Employers ignore illegal ‘Punch out’ system since it can be a source of chaos and conflicts in the work place. Various employees over speed labor that was actually not performed, which leads to reduction in productivity and lower profits. Other employees game the system repeatedly in the course of the week. Example a fifteen minutes rounding rule allows employees to clock-in and out allowing employees to work for less hours than 40 hours required in a week. Refusing to follow illegal punch-out system protects employees through restriction of employer abuses of the time clock rounding policies, which do not offer accuracy when compensating employees. Employers aiming at avoiding abuses towards their employees do not concentrate on illegal punch-outs. Various employers effectively learn how to manipulate the punch system to their favor, which often affect the working of the employees leading to stress and depression in the work places.
Employers ignore illegal punch-out system steals money and time from the company. Some employers use roundness principle, which translates to equal numbers of early and late clock-in and out activities. As a result, some employees may have recorded illegally and thus demanding an overpay averaging to 1.2%. Such employees filter profits from the company illegally. The Company risks losing huge amounts of profits and productivity because of few workers who manipulate the clock for self-gain. Employers ignore illegal punch-out system since they create an atmosphere of objective verification instead of basing business on fundamental trust. The system interferes with relationship between employer and employee along with the process of goodwill. Employees required to punch the time clock believe that employers have no trust over their reporting hours. Such employees lose their self-esteem, under produce leading to loses. In conclusion, Punch-out systems are inaccurate measures of time taken at work places.