How Time Tracking Software can Help Deal With the New Comp Time Law

A mutual agreement is required, either in writing or another verifiable manner, between the individual employee and his or her employer to indicate that he or she wants to receive comp time opposed to pay. In the case of employees being represented by a recognized labor organization, the agreement to receive comp time instead of cash would be made between the labor representatives and the employer. In both instances, such an agreement has to be opted for and be absolutely 100% voluntarily.

Private sector employers are presented with an opportunity here with the option of offering comp time in lieu of cash compensation for accrued overtime. While an employer usually has to pay employees for overtime in the form of cash at each pay-cycle, they now have the ease of being able to offer comp time at later dates. This reduces the demand for immediate cash flow each pay-cycle.

Of course, the option is not without its own challenges. For example, employers still have to maintain and store accurate time and attendance records as required by the FLSA. In order to avoid any disputes in the calculation of overtime pay or time-off compensation, employers can benefit from tools like biometric time clock systems.

Time and attendance tracking systems can offer additional help for small and medium-sized enterprises with FLSA compliance issues such as maintaining records of employee work hours and properly tracking overtime. Time tracking software can help employers enjoy stress-free and accurate payroll as well as provide a sound system to track overtime hours without the threat of compliance or calculation errors.

For more information on the Working Families Flexibility Act, visit www.GovTrack.us.