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Tracking Exempt Employee Hours Illinois/ Indiana

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  • Tracking Exempt Employee Hours Illinois/ Indiana

    I've read through a few older posts, but I want to confirm what I've read and that some regulations have not changed.

    I believe I read it is true employers may ask for salaried exempt employees to complete a time sheet.
    (I always thought it was the contrary, but it would make keeping track of PTO very difficult.)

    We have almost two dozen locations with salaried exempt employees. The company has received feedback from some of our employees who state their top managers at the location rarely work, come in here and there, but are not there anywhere near the 40+ as expected by our corporate office. Since our locations range in great distance, it would be difficult for senior management to note this is truly happening. We would like our managers to log their hours into ADP similarly to the non-exempt folks.

    Your advice?

  • #2
    It is perfectly legal for employers to require Exempt Salaried employees to use a time clock or otherwise record their time accounting. And there are a number of really good reasons to do so.

    To be clear, the federal FSLA law requires employers to keep time records on non-exempt employees, but does not prevent records being kept on Exempt Salaried employees.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      There are also timekeeping systems that an employee can call into that tracks where they are logging in from (GPS coordinates). Otherwise I would block where they have access to the timeclock (only on property not via the 'net etc)

      But that might not solve the whole issue if managers come in to clock in and out and still don't do the work. Or leave for hours mid-day.

      It might be time to do some surprise visits....because if you are hearing about it, it has probably been happening for a while and is happening more than you are hearing about!

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      • #4
        I have been told, but have never been able to confirm, that in a couple of states employers are REQUIRED to track exempt hours.

        Tracking an exempt employee's hours does not destroy their exemption unless you use those hours to affect their pay (and even there, there are legal reasons to do to in some cases). There are some perfectly valid reasons to do so; client billing (when applicable); eligibility for hours based benefits such as FMLA or a 401k; keeping track of sick time, vacation time or other paid leave; depending on how you track it even safety. (We have badges we swipe in and out so that in case of fire or other emergency, Operations can tell immediately who is and is not in the building.)

        I would say you have a valid reason to begin such tracking. And a surprise visit to some of the sites in question might not be a bad idea either.
        The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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        • #5
          Per this article, sounds like Wi. requires time worked by all employees be tracked.

          http://schencksc.com:80/Articles-Res...Employees.aspx


          First, it is a law in the state of Wisconsin. While the (federal) Department of Labor requires timekeeping for only non-exempt staff who are typically paid on an hourly basis and eligible for overtime, employers in Wisconsin must keep time and payroll records for *all employees*. This includes employees paid on a salary basis.

          (There is more in article than what I posted.)
          Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

          Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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          • #6
            This is fantastic information! At my former employer, the only tracking we kept on managers was for PTO. I questioned the reasoning, but it was expressed at that time that it was not proper to track exempt hours.

            Gladly, you are all very helpful with some of the inconsistencies I've experienced in the past. A big THANK YOU to all of you for your knowledge and participation on this site!

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            • #7
              Everyone appreciates the thank you.
              Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

              Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

              Comment


              • #8
                Interesting article, but maybe not very well written. It implies that all "salaried" employees are Exempt, which is not true. Not all salaried employees are Exempt, and not all Exempt employees are salaried. It uses the terms "hourly" and "non-exempt" interchangeably, which is also not necessarily true.

                Still it is possible and common to have states with tougher laws then the federal FLSA law. Requiring time accounting for Exempt employees is not a stretch. There are something like 100 Exempt classifications in FLSA. When most people say Exempt, they mean one of the White Collar exceptions and even those exceptions do not always require the Salaried Basis be used.

                And lets say that one of your "Exempt" employees wins a wage claim that they were really non-exempt. The record keeping requirement just kicked in, retroactively.
                "Reality is that which, when you stop believing in it, doesn't go away".
                Philip K. **** (1928-1982)

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