in-Fusion Group

July 2011:  Farmers Insurance Inc. agreed to pay $1,520,705 in overtime back wages to employees at call centers in Florida, Kansas, Michigan, Oklahoma, Oregon and Texas, according to the U.S. Department of Labor (DOL). "Failing to properly compensate employees for pre or post shift work is a violation of federal law," said Secretary of Labor Hilda L. Solis.

How was the amount of back wages determined? The DOL interviewed employees and reviewed payroll and timekeeping systems to reach the conclusion that Farmers Insurance Inc. did not pay call center employees for time spent on required pre-shift work activities. The activities include turning on workstations, initiating software and logging into the system. The DOL investigators determined that each week employees routinely performed an average of 30 minutes of unrecorded and uncompensated work.

As you think about the routine of your employees, think about the time in your workplace spent on getting ready for the work day or the activities needed to wrap up the work day. It might not be hours each week; it could just be minutes each week. But, multiply those minutes out over a year and you are looking at a substantial amount of money. Are these activities being done “on the clock” or are they unpaid? Changing processes or routines may be in the best interest of your organization. It can keep you in compliance with the Fair Labor Standards Act (FLSA) and it is certainly easier than paying out back wages.