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Missed Time Clock Punches = $0.25 Indiana

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  • Missed Time Clock Punches = $0.25 Indiana

    I recently came on board as HR and discovered the manager was charging people $0.25 per missed punch; which, after one year, resulted in $89.00.

    The manager used this $89.00 to throw a pizza party (Which does nothing but enforce people should miss punches because they get a lunch for it - I am working on the management)

    There are approximately 60 employees and roughly 15 people are the culprit.

    While I realize this is against FLSA, is it considered de minmus?

  • #2
    Making payroll deductions for the 25 cents is prohibited. No law prevents the boss from having employees throw a quarter into the pizza lunch jar however.

    Of course what you and I know is that the manager ought to be disciplining employees who regularly fail to follow company rules (i.e. punch in and out), not fining them.

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    • #3
      You could, going forward reduce their pay for failing to punch in as long as you stll pay them at least minimum wage. Not the best way to deal with the situation but if they are hell bent on affecting pay, that would be the legal way to do it.

      25 cents isn't enough to motivate most people to change. You need to look at why the employees are not punching in. Are they arriving late/ leaving early and not punching as a way to mask it? Is the timeclock in an inconvenient location? Would relocating it to near the entrance/exit help? A sign on the door employees use to exit reminding them to punch their cards (I have done this and it worked)?

      One way I curbed this problem in the past was by making the employee get the supervisor to verify in writing the time started/ ended. After the 3rd time the supervisor has to write up a adjustment for an employee, and that employee has to go to the supervisor in person to get it signed off on, memories improved.
      I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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      • #4
        Thanks for the the thought process.

        However, I find this statement somewhat worriesome and news to me. I am not aware of this. At some point do you need to pay the difference from X to Y's wage?

        Originally posted by ElleMD View Post
        You could, going forward reduce their pay for failing to punch in as long as you stll pay them at least minimum wage. Not the best way to deal with the situation but if they are hell bent on affecting pay, that would be the legal way to do it.

        Comment


        • #5
          Originally posted by Beth3 View Post
          Making payroll deductions for the 25 cents is prohibited. No law prevents the boss from having employees throw a quarter into the pizza lunch jar however.

          Of course what you and I know is that the manager ought to be disciplining employees who regularly fail to follow company rules (i.e. punch in and out), not fining them.
          Again, thanks Beth and while I absolutely know you worded your answer the way you did (which is exactly how I relayed it to my COO) the question is, is there any violation of law in which a manager mandates an employee puts a quarter in a jar if they fail to punch in/out correctly.

          Thus it appears to be a punishment (rather than progressive discipline) for the "crime".

          To be clear, I do not justify this - I am merely curious if the employer needs to "repay" such "mandate".

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          • #6
            Employers are free to reduce wages for any reason not prohibited by law (or CBA) and as a disciplinary measure is not exception. You could reduce the hourly rate going forward by some amount for failure to follow the rules. I'm not suggesting this is the best way to deal with missed punches or any other rule violation but if the employer is set on using pay as a means to address missed punches, that would be the legal way to do it.
            I post with the full knowledge and support of my employer, though the opinions rendered are my own and not necessarily representative of their position. In other words, I'm a free agent.

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            • #7
              the question is, is there any violation of law in which a manager mandates an employee puts a quarter in a jar if they fail to punch in/out correctly.

              No, this is not prohibited. It's dumb (since it clearly hasn't resolved the problem) but it's legal.

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