Payroll: When to Pay and When to Not
Payroll: When to Pay and When to Not
In an earlier post we discussed some of the violations that can occur when payroll is not done correctly. One such article was linked to paying employees for work required responsibilities that do not contribute to work production. Such activities include putting on and removing certain required clothing such as HAZMAT required protection. This is a requirement because the work may not be productive to the company, but the work can not be safely completed without it. The problem though comes from the interpretation of the laws. It can hardly be argued that a worker dressing up to clean toxic spills or a butcher sharpening and cleaning his knives is work that should be paid for. However there are still some areas that what should and shouldn’t be paid for are open for debate.
One such area involves mandatory security screenings. Some factories such as Amazon, who was involved recently with such an issue, require a security screening while entering and leaving to prevent employee theft. The argument given for this was that each day, up to 25 minutes was spent waiting to pass through the screening. This was time the employees were not getting paid for. Naturally some difference of opinion came into the picture. An employee tried to bring legal action against Amazon for not paying employees for the time spent in this employee screening. On the reverse side the process was not a prominent part to the work required. Which side was right on the matter?
Paying For the Time Spent:
On one side of the argument, strong points were made for having to pay employees for their time spent waiting. It was said that the security screening was to reduce employee theft, which directly benefited the company.
Not Tied to Productive Work:
On the reversal of the topic, it was argued that the screenings although required, did not affect the work completed in any way. It was said that if the screenings were removed, the work performed would not be any more or less safe, nor would the production increase or decrease. Regardless of the benefit gained, the employees work and production were not affected, which in turn meant there was no requirement to be paid for their time in waiting.
The Verdict:
The court ruled in favor of Amazon, saying they did not have to pay for time spent in security screenings. It was decided that only activities required to complete the work performed.
How to Avoid Similar Incidents
Even though they won the case, time and money was spent to come to this conclusion. You may not have a business that requires a security screening, but this is just one example of an issue that can come up with payroll when running a business. It is important to prepare yourself for these type of topics. Try to imagine yourself in the place of the employee. Think of what they may have inquiries about, and try to eliminate any potential problems before they arise. Some possible ways to go about this are:
Simplify the Procedures: Some things can not be skipped or avoided, but they can be made easier. If a job requires special equipment to be equipped before the job can be started, place the clock in area near the preperation area.
Have Proper Work Preparation Areas: Make sure all prep areas are properly suited for the job requirements. Don’t makeshift a laundry room into an equipment shed or a bathroom sink into a butcher’s cleaning table.
Put Payroll into Experienced Hands: Payroll can change more often than you think. Put it in the hands of someone who can stay current on trends and laws. It may even be worth looking into outsourcing to a company like Vision H.R. to handle all your payroll and payroll inquiries.
Have an Open Mind and Open Ears: Your best source of information about how well your employees are feeling is from your employees. Communicate with them and be a part of their workday. Don’t be a mysterious voice on the intercom, be a welcoming handshake in the morning. This keeps you on the forefront of how the workplace is operating and connects your employees more to the company.
A company works best when everyone involved works together. Never forget the two main components that create the backbone of a company, sales and employees to make them.
