How do you know your system is configured correctly

A lot of my clients have pay rules and policies that were inherited from earlier systems and assumed to be correct.  Not a lot have taken the time to actually validate that they are currently accurate, and reflective of recent legislative changes.

Unfortunately, nobody thinks about these things until its too late.  Or, they fail to seek independent and qualified advice/validation.

Take for instance Crouse Hospital and St. Joseph’s Hospital Health Center in Syracuse, and Faxton-St. Luke’s Healthcare in Utica and New Hartford, who each recently had class-action law suits filed against them by employees claiming the hospitals didn’t properly compensate them when they had to work through lunch breaks.

The federal Fair Labor Standards Act (FLSA) indicates health-care workers are entitled to a 30-minute meal or applicable compensation if the meal break isn’t possible, but health-care employees usually don’t get to take a full 30-minute meal break… hence the issue.

All 3 of the above hotels use an automated Time and Attendance system from Kronos , but we have no idea what version they are on or whether their systems were properly configured and validated.  Of course, we do know that Kronos’ system can, if configured properly, pay people according to the law and ensure compliance.

For people that have an automated Time and Attendance system, there is a presumption that they are automatically compliant.  The myth is that the software will ensure compliance.  But reality is that the software will only do what you program it to do, and this is where a number of companies inadvertently mismanage their risk.

I have been talking to a number of companies about performing compliance audits and surely news like this validates the position and importance of such reviews.  Especially in the current economic climate as employees scrutinize all deductions on their pay checks.

If you’re not sure about your organization’s compliance, I invite you to contact me and see how I can help you prevent million dollar law suits.  Call me at 1-416-252-1000.