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Time Reporting Memo: Enforcement: The Department of Labor May Recover Back Wages Either Administratively or

The audit of timekeeping processes found timesheets often did not match what was recorded in HRMS. Timesheets were also frequently missing or unsigned. As a result, new policies were established to improve accuracy and compliance. Under the new policies, all hours worked and leave taken must be entered into HRMS daily by the timekeeper and verified by the employee's signature on a weekly report. The signed report will serve as the official timesheet record. Clarification was also provided on the use of flex time and compensatory time. Training will be provided on the new time reporting procedures.

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606 views3 pages

Time Reporting Memo: Enforcement: The Department of Labor May Recover Back Wages Either Administratively or

The audit of timekeeping processes found timesheets often did not match what was recorded in HRMS. Timesheets were also frequently missing or unsigned. As a result, new policies were established to improve accuracy and compliance. Under the new policies, all hours worked and leave taken must be entered into HRMS daily by the timekeeper and verified by the employee's signature on a weekly report. The signed report will serve as the official timesheet record. Clarification was also provided on the use of flex time and compensatory time. Training will be provided on the new time reporting procedures.

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sam
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Time Reporting Memo

Background:

The purpose of our audit was to review time keeping processes and supporting documentation
(timesheets) for UW employees classified as Benefitted and Non-exempt. UW pays these
employees on a monthly basis; however they are also eligible for over-time according to the Fair
Labor Standards Act, which requires that the employee keep a timesheet to report hours worked
each day.

The U.S. Department of Labor (DOL) administers several laws that affect the wages and hours of
covered workers. The Fair Labor Standards Act (FLSA) requires payment of no less than the
federal minimum wage for each hour worked and time and one-half the employee's regular rate of
pay for hours worked in excess of 40 in the workweek for non-exempt workers.

Enforcement: The Department of Labor may recover back wages either administratively or
through court action, for the employees that have been underpaid in violation of the law.
Violations may result in civil or criminal action.

In order to ensure compliance with federal laws and regulations, this audit was conducted
campus-wide.

We requested departments provide our office with copies of timesheets for all employees with
this classification from July 1, 2010 – June 30, 2011. We reviewed timesheets for the following
criteria:
 Timesheet reflected total hours worked by employee on a daily basis for period reported
 Hours were categorized according to various time codes: normal hours, paid leave, or
compensatory time (earned, taken or paid), etc.
 Timesheet signed and dated by employee and supervisor
 Compared the timesheet to the entry of hours into the Human Resource Management
System (HRMS).
 If the timesheets and HRMS did not match, then we interviewed the department and
reviewed the use of shadow systems if necessary.

We reviewed the timesheets for the following individuals:

We noted the following issues noted campus wide:

1. Observation: Timesheets Do Not Match information in HRMS


In many cases we found that the timesheets did not match the time recorded in the HRMS
system. Since this is the system which calculates an employee’s pay, tracks paid leave and
comp time, it is important that it exactly duplicates the timesheet that is signed by both the
employee and the supervisor in order to show compliance with FLSA.
2. Observation: Missing Timesheets
Timesheets were frequently missing. Since timesheets are signed, they are the official
document to record an employee’s time and must be kept for seven years in the department.

3. Observation: Employees seldom review the HRMS system for accuracy


We found that there is not a process which ensures that employees can review the time and
leave entered into HRMS. Since UW requires someone other than the employee to enter
time, it is important that the employee have the opportunity to review the data entry to verify
the accuracy and signify their approval.

4. Observation: Timesheets should be signed


We found many timesheets that were not signed by the employee and the supervisor. In order
to validate the accuracy of the hours worked the timesheet must be signed by both the
employee and the supervisor. This ensures agreement between the supervisor and employee
that the timesheet accurately records the hours worked and leave time taken.

New Policies and Procedures:


Based on the results of this audit, the following new policies and procedures will be established
institution wide effective March 1, 2012:
1. The official system of record of the University for an Employee’s Time will be the
HRMS system. In order to ensure the accuracy of this system and to ensure that the
employee’s time has been accurately recorded, the new process will be as follows:
a. The employee will turn their time into the timekeeper. This can be done using
whatever method works best for the department.
b. The timekeeper will enter the time into the HRMS system. All hours reported
should be entered into the system including hours worked, as well as vacation
and sick leave (positive time reporting.) It will no longer be acceptable to report
only leave or extra hours (exception-based time reporting.) The system will
calculate compensatory time as entered however when comp time is used it must
be indicated in the system. Also please note that when sick leave or vacation
time is taken during the week and extra time is worked either throughout the
week or on Saturday, all hours and leave should be entered into HRMS. The
Payroll Department will make any necessary adjustments after discussion with
the timekeeper and employee.
c. The timekeeper will double check the system to ensure that the hours were
recorded and loaded correctly.
d. After ensuring that the hours loaded correctly, the timekeeper will print off the
Report of Time Entered available on the system.
e. The employee will review the report and sign and date it.
f. The supervisor will also review the report and sign and date it.
g. This document will serve as the official backup document and will therefore need
to be retained by the department for 7 years.

2. Clarifications of Compensatory (Comp) and Flex Time


We also noted that there was some confusion about the management of flex time and
comp time.

a. Flextime. Flextime is a change to a regular work schedule without changing the


percent-time of the appointment. The supervisor has the authority to grant or
deny a staff member's request for a flextime schedule. To ensure support for
operational needs for the department/office, the supervisor may designate "core
times/days" when all staff members are required to be present at work. For non-
exempt staff, flextime is a change to the regular hourly work schedule by having
an earlier arrival and departure time, or by working more hours per day for fewer
work days. A position may be scheduled for flextime hours, or a staff member
may discuss and prearrange the possibility of a flextime schedule with her/his
supervisor.
b. Compensatory (comp) time. Compensation for overtime is in the form of
compensatory time off. Such comp time will be at one and one-half hour for
each hour of overtime worked in excess of 40 hours in one week. If comp time is
taken, it must be the result of a mutual agreement between the staff member and
supervisor prior to the performance of the work.

Staff members may accumulate up to 240 hours of comp time. Comp time over
240 hours will be paid out. Comp is not deleted from the system and staff
members should be permitted to take accumulated comp time off within a
reasonable period of time after the overtime is worked. When an employee takes
time off and has a comp time balance, the comp time will be absorbed first before
vacation time hours are deducted.

The timekeeper is responsible for entering all hours for an employee (worked
and leave) into the HRMS system. The HRMS system will compute extra hours
as comp time. The timekeeper is also responsible, for entering the number of
comp time hours used each day by each employee.
The Payroll Department will be holding training forums to explain the new process and answer
any questions. They also have an instruction manual that can be found at
https://www.uwyo.edu/employeeshr/_files/docs/payroll-office/report-of-time-entered.pdf.

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