Time Cards and Records: In an era of increasing Wage & Hour Audits, we find that many employers do not keep accurate time records. Time cards are REQUIRED under both federal and state law for all non-exempt employees. Employers must keep accurate records of the time worked by their non-exempt employees (and preserve these time records for at least three years). This can be done by writing out the time worked or by punching a time clock or computer log/on-off, for example. The time records must show when the employee begins and ends each work period, as well as meal periods, split shift intervals and the total daily hours worked. Meal periods during which all operations cease and authorized rest periods need not be recorded. (Labor Code § 1174 and the appropriate IWC Order). As a recommended practice, the employee should sign the cards as verification of hours worked and meal breaks taken in accordance with law (please note that it is illegal to force an employee to sign a timecard for falsified hours).
Overtime: Another area that employers make mistakes is failing to comply with CA’s daily OT requirements. Employees are due 1.5 times the employee’s regular rate of pay for all hours worked in excess of eight in any workday. In addition, the employee is due twice their regular rate of pay for all hours worked in excess of 12 hours in any work day.
Moreover, many employers may the mistake of assuming that salary pay for an employee means no overtime is owed. That is not right and they need to speak with their payroll specialist about the difference between salary exempt and salary non-exempt. A salaried employee MUST be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of one of the IWC Wage Orders.
Our Payroll Company, RedWolf Payroll, can help you make payroll less burdensome and spot problem areas to try to keep you out of harm’s way. Give us a call today to see how we can help you.
Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.