10 Guidelines by FLSA every Attendance Tracking Cloud Software must follow

Nov 02, 2022
Attendance tracking cloud software must follow the FLSA guidelines that lay down the rules for minimum wage, overtime pay, recordkeeping, and child labor.

What Is Attendance Tracking Cloud Software?

Employee Attendance Management System is being used by more and more companies now that the work profile of their employees has diversified. After most employees started Working from Home, tracking the work hours became a big challenge for employers. With Attendance Tracking Cloud Software employers can now track remote workers. It is important to evaluate the input of the employee to increase overall productivity. Employees can also clock in remotely, monitor their work hours and overtime, and see that they are fairly compensated.  Furthermore, they can ensure that their time is counted even when they work remotely or on paid time off. The cloud tracking system has proved to be an excellent management tool that has benefited both parties. It not only helps monitor the workers' attendance but also has other benefits too. An enterprise-grade attendance tracking cloud software must support the following at minimum;
  • It helps with keeping track of the employee's work schedule and leaves.
  • It can also accurately calculate the employees' salaries, whether per hour or piece.
  • It also keeps track of the mealtime breaks (if they are not a part of shift time in a company policy)
  • It is accessible anywhere, provided the device has login access to the system.
  • It also helps to manage the employee’s calendar and suggests changes for better work time utilization, thus boosting productivity.
  • Prevents any fraudulent report of time entry and shift attendance.

What is FLSA?

The U.S. CONGRESS passed the Fair Labors Standard Act (FLSA) in 1938 as a safeguard for U.S. employees to provide them with a fair and nondiscriminatory workplace. Ninety years and a few amendments later, the FLSA still stands tall to protect the rights of full-time and part-time employees in the private sector and government (local, state, and federal). It covers the rules and regulations regarding minimum wages, overtime compensation, record documentation, and child labor. Three Departments enforce the FLSA in different departments - the WHD (Wage and Hour Division) overlooks the private sector and government establishments, the U.S. Office of Personnel Management covers the rest of the Executive Branch, and the U.S. Congress solely deals with the Legislative.

FLSA Guidelines

FLSA clearly states that every employer must maintain an accurate record of each employee's attendance sheet, so there is no discrepancy in compensation. It should mention the personal details and work profile of the employee. It should regularly update the details like the number of hours they work, overtime, leaves, etc. Failure to do so can land the employer or the company in legal trouble. A violator is liable for criminal prosecution. A fine of $10,000 can be levied on the offender or even jail if convicted a second time.

Which employees are covered under the FLSA Act?

FLSA covers almost all government offices, U.S. Post office officials, and, workers in commerce and production. WHD clearly distinguishes the exempted and non-exempted employees. The department has a specific list of exempted workers- separate lists for the ones exempted from minimum wage, overtime, or both. A detailed handbook is also available in local WHD offices. The attendance tracking cloud system is customizable and should be tweaked according to the policies under which the employee falls.

FLSA Timesheet App

The Wages and Hour Division of the U.S. Department of Labor also launched its Attendance Management Cloud Software- Timesheet App. It is available for iOS and android. The app allows employees to track work hours, overtime, breaks or leaves through the app. It accurately calculates salary based on the information punched in the worker. The enumeration can be by the hour or by the piece as decided by the employer and the employee. The Acting Administrator of WHD said that they wanted this to be a preventive measure against wage theft so that the workers could track their hours and get fair salaries. The motive behind this app was to empower the workers and make sure that they were fairly compensated for their labor.

FLSA Guidelines for the Attendance Tracking Cloud Software

Employee Attendance Tracking Cloud Systems are required to respect the users' privacy to avoid violating the FLSA guidelines. It lays down the steps that companies should take using Tracking Systems with the workweek schedule, overtime pay, recordkeeping, and special rules governing the employment of children.

1. Track their login/log out

There are many attendance management systems. Companies have been using manual time log spreadsheets, biometric identification, etc., to keep tabs on the workers. Cloud tracking system is perhaps the most efficient out of all. It has made monitoring remote workers more accessible, and in-office management has also become more organized. It is easier to monitor their clock in and out time, their break times, leaves, and overtime, making the calculation of pay convenient and accurate. There is little scope for inaccuracy since the system is self-regulatory.

2. Necessary Personal Details

An integrated Attendance Tracking Cloud Software makes accessing information anytime and anywhere easier. The employers must record the employee's details like name, address, sex, DOB, and his association with the company ( joining, position, etc.). The cloud is a safe space that can store information for a longer duration.

3. Overtime Pay

A workweek is forty hours, and labor other than that is overtime. A company should maintain a clear record of the work timings through the employee attendance tracking cloud system. According to FLSA, a company has to pay at least one and one-half of the hourly overtime pay. A Cloud management system is perhaps the most efficient way to maintain a transparent timetable.

4. Details of the Employee's Schedule

A competent attendance tracking cloud software should have a set schedule for each workweek's start and end, rate per hour, and overtime remuneration. The system should include the number of hours worked each day and week, including overtime. This would make paying the salary a smooth transaction. Employers can easily observe trends in productivity and lack thereof and plan a course of action to optimize things for better results. Therefore, the employees will have fair compensation and errorless attendance management. They will get their salary calculated based on their work timings, leaves, and overtime.

5. Weekend Compensation

The work week is typically five days a week, with weekends usually being off days. Working anymore than 40 hours will come under overtime. However, there is no guideline in the FLSA for any special allowance for weekends. Workers should get their overtime compensation.

6. Leave Policy

FLSA does not recommend or regulate the leave policy for workers. The paid time off, holidays, and even sick leaves are up to the contract between the employee and the employer. The leave policy differs from company to company. They are, however, required to maintain a clear record of leaves and other absences in their Attendance tracking cloud software.

7. Payroll

The employee attendance tracking system has an integrated feature that can calculate the payroll error-free using the data entered into the system. If the employee enters the hourly wage and hours put in per day or week into the system, they can also calculate the weekly/monthly salary.

8. Deductions

Recordkeeping is essential to fairly remunerate the employee for all the hours put in, workweek or otherwise. The FLSA has set the minimum wage as no less than $7.25 per hour effective from July 24, 2009. The overtime compensation should be more than or equal to one-half times the normal hourly rate. One important thing to note is that minimum wage is not compulsory for tipped employees. That is, an employer can consider earnings of more than $30 in tips per month as a part of the pay. The employer still has to pay $2.13 or complete the difference to meet the minimum wage specified in FLSA. Additionally, details like unpaid leave and absents can be tracked and maintained through the software. Creating the right work calendar is essential to ensure that no one is cheated out of their pay, and the employer should customize the attendance management system accordingly.

9. Meal breaks

Break time is totally up to the employer. While some employers include meal time in the shift, some consider it extra. But keeping a precise break time record is important to track the number of hours put in work. The worker should not lose their hours. The attendance tracking cloud software should have a proper login and logout time.

10. Record Maintenance

Storage of different documents is subject to the Rules and Acts that deal with them. For example, an employment offer needs to be kept for a year, whereas a payroll document should be kept for four to seven years. The Attendance Tracking software should have the provision to keep the employee details in their records even after they have quit/ fired. Anyways, after the last entry, most required documents are stored for up to three years on the recommendation of Payment of Wages Rules, 1937. The records maintained by the company have to be available for inspection by WHD (Wages and Labor Division) of the U.S. Department of Labor (DOL) if and when summoned for interrogation. If the company fails to produce the employee reports before the department, they are liable to criminal prosecution and a fine of $10,000. Additionally, a second-time violator can face jail time for record discrepancies.


The FLSA Act safeguards employees to ensure they get fair pay for honest work. An employer should maintain a proper record of their workweek, wages, and overtime if any. Attendance tracking cloud software should be competent to maintain this record and make it available to be scrutinized by WHD if and when required. Every company using the Attendance tracking cloud system should follow these guidelines.  

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