Careful — new OT regs could mean increased timesheet fraud
You want to believe that all employees will be honest about their “hours worked” when it comes to filling out their timesheets. But what happens when workers are blatantly cheating the system?
Timesheet fraud is a real problem that can take a huge chunk out of employers’ bottom lines – especially those in industries and jobs where it’s easy for workers to cheat.
Plus, the DOL’s new OT regs will likely see a lot of formerly exempt employees punching a timecard for the first time in their careers. And resentment for having to do this may lead some staff to take some liberties with their timekeeping.
When is it stealing?
One of the best ways to prevent timesheet fraud – also known as wage theft – is to be aware of the various ways that employees can engage in fraudulent timekeeping such as:
- engaging in personal activities outside normal breaks while on the clock
- coming in late but recording it as “on time”
- recording time falsely for another employee, or
- taking an extended meal break but recording less time.
Proven safeguards
The good news is there are plenty of steps and safeguards employers can take to prevent timesheet fraud. Here are some of those steps, courtesy of labor attorney John K. Skousen:
Create a written timekeeping policy with instructions on the obligation of honest timekeeping and different bans against fraud.
Train managers on how to capture work time accurately as well as on all relevant wage and hour laws.
Include a managerial review process for all timesheet submissions (without this it’s more tempting to cheat).
Set up a system where the labor budget is fixed for each job so variances are easily to spot.
