Altering Time Records Can Mean Personal Liability-A New Case

U.S. Department of labor has once again jumped into the mix and stated under the Fair Labor Standards Act that employees can sue their managers, human resource professionals, and owners for altering time sheets and hold them personally liability.

We have had many discussions with our clients on this exact issue. If you’re responsible for approving time sheets or signing off on alterations to the hours reported, it’s not just the organization that can be held liable according to a new ruling on the federal level. The U.S. Department of Labor announced that they have been receiving more complaints in this area as well as employees being forced to work through breaks. As I have stated previously, federal audits regarding wage and hour related issues will be increased next year. Some clients have already been audited.

For breaks to be unpaid, employees must be completely relieved of their duties. Do not let them take their breaks or lunch at their workstations. There was a recent case where the managers of a particular company routinely deducted time (i.e. lunch, missed punches, unauthorized overtime) and the CEO or Human Resource person signed off on the altered time record. Be particularly careful if you have a business that requires staff to remain on premises or have to call in when they are not on the premises.  Because their time was not their own the court said they should be compensated. I this case the court held the CEO personally liable and ordered him and the company to pay $500,000 to the employees.

For the reasons stated above you have to make sure supervisors and managers don’t encourage off-the-clock work OR the altering of time records. If your responsibilities include approving time records don’t get caught with going along with the status quo. As a final note, don’t make assumptions that the supervisors or managers are doing everything according to company policy. I cannot tell you the number of times that we have conducted HR Audits and to the “shock and awe” of our main contact we find that that similar practices as noted above are happening on a regular basis. My best advice is for you to monitor time record keeping procedures and do not sign off (and make sure to document your objections) on practices that you know are illegal.