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Are You Mitigating Your Labor Litigation Risk?

Many businesses, especially field services companies, are faced with the ever-present threat of class-action lawsuits, IRS audits and union issues.

An article on the BSCAI Services website points to an annual report from Chicago-based law firm Seyfath Shaw LLP that showed “wage & hour litigation continued to outpace all other types of workplace class actions” in 2011 and “this trend is likely to continue in 2012.” Unless time, materials and expenses are gathered at point of use by the employee, it’s difficult to create the right reporting and audit infrastructure.

A company’s timesheet management software needs to compare technicians’ schedules with actual time worked and it should collect lunch and travel as well as any expenses. This way, managers have access to more than just start and stop times; they have the whole picture for the day or week.

The article points out six key factors field services companies must address so that they can reduce risk of labor litigation and IRS audits:

  1. Proper training of management
  2. Proper calculation of meal breaks
  3. Overtime calculations
  4. Pay differentials
  5. Protecting confidential data
  6. Accurate and easily accessible audit trails

When choosing software, it should be able to handle vacation time and other non-customer-facing time so companies can relate this to the right pay code. All this data can now be formatted for weekly reporting and can be accessed immediately online.

Source: BSCAI Services, August 2012