The Department of Labor classifies a salaried employee as one who is paid a pre-determined amount regularly. The wage amount is set before the pay period. Employers typically issue a paycheck monthly or bi-weekly.
Some employers forego workforce management because their employees are all on salary. This misconception is probably due to the fact that it’s marketed primarily for hourly industries. Workforce management software is a must for hourly employees—that’s a given. I would argue that it is equally critical for salaried employees. Let’s discuss the reasons why.
Labor Law Compliance
The Fair Labor Standards Act (FLSA), Affordable Care Act (ACA), Payroll Based Journal (PBJ), and Family Medical Leave Act (FMLA) all have provisions that apply to salaried employees. This fact alone justifies workforce management for salaried employees, but let’s take a closer look.
The Fair Labor Standards Act is extremely broad and, in places, non-specific. Compliance is not always clear-cut. Because of this, it isn’t too difficult for a class of employees to prevail in a dispute. Plus, judges usually side with the employee(s) when there is a lack of evidence. In other words, proper recordkeeping is a requirement in and of itself.
A workforce management system is your best protection.
Many employers are tripped up by overtime regulations. Employers should pay special attention if they have employees categorized as non-exempt.
There are several criteria that an employee must meet to be exempt from overtime protections.
Some business owners believe that if an employee passes just one of the duties tests, they are properly classified. Every year, the Department of Labor (DOL) penalizes misclassification by employers large and small.
In some cases, employees can sue for three previous years of underpayment. The employer is required to pay the back wages and possibly liquidated damages.
Some small business owners knowingly misclassify employees because their margins are thin. They squeeze out more revenue and think they can fly under DOL radar. This practice is shortsighted and risky—and definitely not sustainable.
If an employer can’t afford to pay legitimate overtime, they can’t afford a penalty. A fine would include back wages, liquidated damages, and attorneys’ fees for all parties. (In a lump sum, to boot.)
Use workforce management software to properly classify employees and track their hours.
Perhaps you have scrutinized the FLSA requirements but still can’t figure out how to classify an employee. This is understandable because the FLSA wasn’t written for today’s modern workforce. Some positions or job duties don’t fit neatly into one of the defined categories.
What if you are not sure if a worker qualifies as exempt?
Many business advisors recommend switching the employee to hourly non-exempt. You would then have to pay overtime, but it would keep you in a safe legal territory. The advice of an experienced wage and hour attorney is invaluable for questions such as this.
Workforce Management For Payroll Based Journal
Skilled nursing facilities that provide long-term care are subject to Payroll Based Journal. Facility owners need to track daily employee shift hours by job role and site plus staff turnover. This is easier said than done. (And it’s not particularly easy to say.)
Long-term care facilities often have a mix of hourly, salaried, and contract workers. Couple that with shifts that can span two calendar days. And employees who work more than one job role in the same shift. Plus mobile workers who float between facilities. You get the picture. PBJ compliance is complicated.
A workforce management system streamlines the process and relieves administrative resources. It’s your best tool to meet PBJ requirements.
Optimize Resource Allocation
Workforce management analytics are an underutilized resource. Many employers fail to realize how powerful they are. If you have a workforce management system—but haven’t used the analytics—you are not optimizing your human capital. And wasting the potential of your WFM system.
Your workforce management software should measure productivity. The definition of productivity is straightforward: time worked per tasks completed. You can track it per employee, department, account, or any other company-specific metric.
Workforce management software can help you answer a few important questions to gauge workforce productivity:
Which employees are most productive? Does it vary per project or job role? Would cross-training improve employee engagement? Is there a higher absence rate for some teams or projects? Does productivity vary by account or business location?
Your WFM software can help you improve productivity. When employees are placed where they can succeed, they are happier about their jobs. Everyone benefits.
Create schedule templates to simplify multi-team or multi-location scheduling. Templates are easy to create and even easier to use from period to period. You’ll save a lot of time and improve scheduling efficacy.
Use workforce management employee profiles for all your personnel. This includes hourly, salaried, contractors, and interns. Track certifications and trade licenses. Designate employee types; subcontractors, union contractors, interns, and seasonal workers. Set requirements per location, shift, or project.
The system will alert you to qualification requirements and conflicts. Plus license expiration dates. You can remind employees to re-certify before their licenses expire. Employee profiles help you schedule effectively. They also help you forecast staffing needs. This is especially valuable if you are planning to launch a new product or enter a new market.
Businesses that bill per job or account need workforce management for accurate paychecks and invoices. This protects all three parties; employees, clients, and you, the business owner. Job billing tools ensure that your client billing and payroll run on schedule. After all, they are interdependent.
It can be difficult to get clients to pay on time in the best of circumstances. You don’t want your clients to delay payment because of an incorrect invoice.
These are a few of the reasons workforce management makes sense for salaried employees. There are many more. SwipeClock’s WorkforceHUB has tools to manage all of your employees, regardless of the way you pay them. To learn more, visit SwipeClock for salaried employees.
By Liz Strikwerda