As an employer, you know the Fair Labor Standards Act (FLSA) requires you to track how long your hourly employees work and what they earn. How you do it, though, is up to you.

Each method has its share of pitfalls:

• Hand-written timesheets - One of the oldest methods, completed by either the employee or the employer. Of course, it’s not too hard to alter a document like this, or to question legibility of the numbers.
• Punch clocks – Harder to alter by hand, but in many cases there’s little to keep a co-worker from punching in or out for someone else, commonly called “buddy punching.”
• Computerized and biometric timekeeping – These simplify tracking and reporting data, and it’s pretty hard to fake out a fingerprint scanner. But, they can’t prevent employees from clocking in on time and making personal phone calls or surfing the web instead of starting work. And it may still be possible to enter unauthorized overtime.

Think you don't need automated timekeeping? Think again. But what exactly is it and how can it help your business?

When businesses run afoul of labor provisions, the fines can be sizeable.

Recently, Walt Disney Co. reached an agreement with the Department of Labor (DOL) to pay out $3.8 million to 16,339 employees. The DOL’s Wage and Hour Division determined that Florida-based Disney Vacation Club Management Corp. and Walt Disney Parks and Resorts U.S. Inc. failed to observe the the Fair Labor Standards Act overtime, minimum wage and record keeping provisions.

The restaurant industry is known for its high employee turnover rates. According to the National Restaurant Association,  "the turnover rate in the hospitality sector topped 70 percent for the second consecutive year" in 2016. 

Restaurants aren’t the only businesses experiencing high turnover. Industries like tourism, lodging, healthcare and entertainment struggle with high turnover every day. It's difficult to calculate the true cost of turnover, but estimates from the Center for American Progress show that each new employee earning less that $30,000 per year costs around $4000 to replace. Management positions can cost more than double that amount. Is there a solution?

As we said, the Department of Labor (DOL) recently unveiled the newest addition to the Fair Labor Standards Act, a law that has been updated multiple times over the last several decades. With the new rule, the DOL raises the minimum salary threshold for overtime exempt workers within companies with over $500,000 in annual revenue. The two main types of salaries are:

1. Exempt from overtime (these employees don't qualify for overtime)
2. Non-exempt from overtime (these employees do qualify for overtime)

Although many employees believe they belong to the first group, salary exempt, a lot fall under the salary non-exempt category. This is usually because they do not fall under the true definition of a manager (see the What It Boils Down To section below).

You've probably heard about the recent changes to the FLSA (Fair Labor Standards Act). As Forbes puts it, these changes will make millions more employees eligible for overtime while making compliance more challenging for business leaders. This new rule is just one reason you should be thinking about automated timekeeping and scheduling.