Recently I had a conversation with a client who was evaluating additional ways our company could help his. In the course of the discussion, I asked him how he tracked his employees’ time. His response was VERY typical. “I pay everyone salary, so I don’t need to.” This is a common misconception and one that costs businesses dearly.
In one recent Oklahoma case, an employee who was paid salary filed a labor claim stating that she had not been paid overtime for her work over 40 hours a week. When asked to dispute this fact, the employer had zilch, nada, zippo. They paid her salary, why did they need time records, right? Wrong! The Department of Labor awarded her the time and a half for all of the “unpaid” overtime, then threw in a 100% civil penalty for the fun of it.
Frankly, I think the employer was lucky. Employees talk, especially disgruntled ones. How long until the next one that is fired lodges the same complaint? Click here to access an article we wrote on paying overtime to salaried employees and learn more about the importance of tracking employee time. Of course, every business is different, so please contact us at firstname.lastname@example.org for a no-obligation evaluation of your company’s situation.
Let our experts help you with any of you bookkeeping, payroll or tax needs. Contact our offices in Oklahoma City: 405-720-1244 or Tulsa: 918-477-7650 to get the help you need.