Do employers need to have a computerized timekeeping system to comply with their requirements under California law? Surprisingly (or maybe not so – depending on your views on how slow the law is in adapting to technological advances), the Labor Code does not address this issue right on point. Yet, there are some governing principles employers can review in making the decision on what practices are best for their business. This Friday’s Five covers five key obligations employers should consider when setting up time keeping systems:
1. Are employers required to use a particular type of timekeeping system?
California law does not require the use of any electronic type of timekeeping system or time clocks. Employers may elect to use paper and pen in recording an employee’s time. As explained below, the records should be “indelible,” meaning that the time entries cannot be erased, removed, or changed. However, even with just a handful of employees, many employers find it more efficient to use an electronic timekeeping system. Moving towards an electronic time keeping system can reduce mistakes in the recording and calculation of time worked, make it easier to track changes, and could make a review of the time entries easier should there ever be a challenge by the employee about their pay. Most timekeeping software today will also help monitor meal break compliance and will automatically flag any violations for a manager’s review.
2. Can time records be kept electronically?
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