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Reducing Labor Compliance Risks

VIEWS: 8 PAGES: 4

SMBs and Enterprise-level companies alike are faced with daily challenges in effectively coordinating and managing their workforces. This whitepaper describes the complexities of regulatory compliance and outlines how to use workforce management technology to avoid potential penalties to your organization.

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									      Whitepaper




      Reducing Labor
      Compliance Risks
      Using Workforce Management
      to Keep Compliance Under Control



      Oftentimes, an organization does not seriously consider the complexity of regulatory
      compliance or its potential impact until it becomes a problem. Complaints to
      regulatory bodies are more common than perceived, and are usually upheld
                                                                                                SumTotal Systems
      following an investigation.                                                               acquired CyberShift
      Between October 2007 and June 2011, the U.S. Department of Labor collected                in 2011 as part of our
      over $680,000,000 in back wages and assessed over $34,000,000 in civil                    complete Human
                                                                                                Capital Management
      monetary penalties across 1,634,668 separate case violations. In 2008, it
                                                                                                solution. CyberShift was
      took 97 days on average for the Department of Labor to resolve a regulation               the leading provider
      compliance investigation. About 78 percent of those that included investigations          of workforce and
      of FLSA violations were found to be legitimate and resulted in citations.                 expense management
                                                                                                software and services,
      These risks to time, capital and reputation are often unintentional and
                                                                                                focused on improving
      easily avoidable. The most common FLSA violation in 2008 was the payment                  organizational
      of straight-time pay for overtime hours worked, and similarly large numbers of            performance and
      citations were issued for failure to pay employees for all hours worked.                  profitability. CyberShift’s
                                                                                                products are part
      The Global Picture                                                                        of SumTotal’s fully
      Globally, the situation is more complex; modern organizations need to consider            supported core pillars.
      international standards in addition to the multitude of local and national laws in
      any number of countries.
      In the U.K., for example, while employers are permitted to ask employees returning
      from sick leave to provide proof of fitness to return to work, they are required to ask
      for a Statement of Fitness to Work for any sick leave period that exceeds seven
      days. Whether such “doctor’s notes” are company policy or national law, SumTotal
      Workforce Management, formerly CyberShift Workforce Management 3G,
      can help your organization collect and organize such documentation through a
      robust absence management system that allows employees and supervisors to
                                                                                                The most common
      attach files directly to absence requests.                                                FLSA violation
      Wage regulations vary widely from market to market as well. Even minimum wage             in 2008 was
      requirements, which seem simple at first glance, can become quite complex for             the payment of
      the global-minded manager. For example, in the U.S., most employees are                   straight-time pay
      entitled to at least the one national minimum wage, with some notable exceptions          for overtime hours
      (e.g. waiters’ tips do contribute), while in the U.K., there are four minimum             worked.
      wages based on age, with tips are not counted toward the minimum. SumTotal
                                                                                                — Source: The U.S.
      Workforce Management can rein these complications in with a Time & Attendance               Department of Labor
      system that allows multiple levels of rate configuration, set by employee, date,
      work type and more, like proving rate premiums based on time of day.




www.sumtotalsystems.com                                                                                                       1
Reducing Labor Compliance Risks: Using Workforce
Management to Keep Compliance Under Control


      And in all markets, even those with less strict regulations, employers must
      maintain labor standards consistent with their own internal ideals, or they
      risk damaging public perception, employee morale and relations with
      increasingly global trade unions, consumers and business partners.
      Managing Your Workforce to Reduce Risk
      Using a robust Workforce Management solution, an organization can reduce
      the risk of compliance violations, maintain morale and stay responsive to any
      compliance issues that do arise. SumTotal Workforce Management helps
      ensure that the organization stays within regulatory compliance by managing and
      tracking break times, pay rules, overtime and approvals.
      Using a combination of employee sign-off and supervisor approvals keeps
      everyone informed whenever any changes are made, ensuring that any
      inconsistencies are resolved before the records are even sent to payroll. And
      there is no need to leave anything to chance; SumTotal Workforce Management
      helps ensure that organizations faced with regulatory complaints have accurate
      historical records to properly and promptly respond with the necessary data.

      Consistency and Automation
      Even basic automation and record keeping would help prevent many of the
      inaccuracies that lead to the most common regulatory violations, such as failure
      to pay overtime or pay for all hours worked. The ability to report on scheduled
      time, worked time and breaks helps organizations stay within compliance
      consistently by identifying issues before they become problematic.
      SumTotal Workforce Management helps organizations stay within regulatory
      compliance by facilitating the following tasks:

             ■ Tracking meal and break times, and reporting on any
                 exceptions
             ■ Regulating and tracking overtime pay
             ■ Employee- and supervisor-level approvals
             ■ Managing and reporting on scheduled work time
             ■ Managing and reporting on actual work time
             ■ Pay rule management

      Accurate Records
      Most regulatory compliance complaints are resolved in favor of the reporter.
      Proper record keeping and audit history, such as those offered by SumTotal
      Workforce Management, equip organizations with the tools they need to
      recognize issues early and defend themselves against invalid complaints.
      SumTotal Workforce Management helps organizations respond to disputes with
      historical record keeping, audit histories and reporting tools that make it
      easy to organize all available information.
      Employee sign-off and supervisor approvals help prevent record inaccuracies
      and incorrect payments by ensuring that all relevant parties verify the accuracy
      of recorded work time, and alerting those involved when any changes are made




www.sumtotalsystems.com                                                                  2
Reducing Labor Compliance Risks: Using Workforce
Management to Keep Compliance Under Control


      to previously approved time. By keeping employees involved in the approval
      process, organizations will not only reduce risk, but increase transparency and
      maintain employee morale.
      SumTotal Workforce Management also helps organizations maintain employee            “Implementing the SumTotal
      information required by regulations such as the FLSA:                               Workforce Management
                                                                                          solution has enabled us
             ■ Name, Address, Gender and Occupation                                       to better manage our
             ■ Pay rules                                                                  workforce, reduce costs and
                                                                                          empower City employees to
             ■ Pay rate
                                                                                          be more productive. We can
             ■ Hours worked each week, including overtime                                 forecast staffing issues, track
                                                                                          by shift, uncover trends, and
             ■ Additions to or deductions from the employee’s wages
                                                                                          take a proactive approach
                 each week                                                                in managing our workforce
      Addressing These Challenges                                                         – all of which contributes to
                                                                                          maintaining and improving
      SumTotal Workforce Management helps optimize an organization’s labor
                                                                                          service levels for the
      compliance by encouraging and maintaining automation, one-time configuration,       residents of High Point.”
      direct employee involvement, high employee morale and accurate record
      keeping. Wherever an organization’s employees live and work, labor compliance       —Tom Spencer
                                                                                           Systems Project
      is a growing concern, and SumTotal Workforce Management can help you keep
                                                                                           Administrator, City
      it under control with the following:                                                 of High Point
             ■ Configuration – Manage employee information, pay
                 rules and default schedules by groups or individually to
                 ensure accuracy and consistency across the workforce.
             ■ Automation – With most standard processes occurring
                 automatically, employees and managers need only
                 address exceptions…less time at the timesheet means
                 more time on the job.
             ■ Accuracy – Historical records for all employees’ work
                 and break times, change auditing and approvals at
                 both employee and supervisor levels help ensure the
                 accuracy of all recorded time.
             ■ Reporting – Easy access to the information you need
                 organized, as you need it, makes it easy to identify and
                 call out issues before any problems actually arise.
      SMBs and Enterprise-level companies alike are faced with daily challenges in
      effectively coordinating and managing their workforces. SumTotal Systems has
      experience in supplying workforce solutions across all industries, many of which
      face some type of compliance regulation. Tapping into our resources will give you
      a greater opportunity to use yours and avoid possible penalties.




www.sumtotalsystems.com                                                                                                     3
 Reducing Labor Compliance Risks: Using Workforce
 Management to Keep Compliance Under Control



               More Information
               For more information, send an email to connect@sumtotalsystems.com
               About SumTotal
               SumTotal Systems, Inc. is the global leader of strategic Human Capital Management
               (HCM) solutions that provide organizations with a new level of visibility to help
               make more informed business decisions and accelerate growth. Recognized by
               industry analysts as the most complete solution, SumTotal provides full employee
               lifecycle management, including a core system of record, from a single provider
               for improved business intelligence. The company offers customers of all sizes
               and industries the most flexibility and choice with multiple purchase, configuration,
               and deployment options. We have increased the performance of the world’s
               largest organizations including Sony Electronics (NYSE: SNE), AstraZeneca
               (NYSE: AZN [ADR]; London: AZN), Amway (KUL:AMWAY), Seagate (NYSE:
               STX), Dell (NASDAQ:DELL), and Google (NASDAQ:GOOG).
               For more information, or to request a demo, please call +1 (866) 768-6825 (US /
               Canada), +1 (352) 264-2800 (international) or visit www.sumtotalsystems.com




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www.sumtotalsystems.com                                                                                                                                                        4

								
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