Continuous Compliance, Simplified
January 27, 2022
by Malysa O’Connor
For managers of hourly employees, no issue causes more worry than “compliance with labor laws.”
There are so many rules and regulations – local, state, and federal labor laws, payroll compliance mandates, overtime exemption wage rules, flexible spending arrangement (FSA) contribution limits, and internal benchmarks and limits – the list goes on.
The real issue is that the rules keep changing, especially during the continuing pandemic. And the penalties for non-compliance are steep, including fines, fees, possible lawsuits, and damage to the company’s reputation, making it more difficult to recruit and retain top talent.
So, what can a manager do to maintain compliance in the face of constant change?
How Can Legion Help?
Consider moving to an intelligent, automated workforce management (WFM) solution. A recent report from Forrester Research underscores the value of the Legion WFM platform in maintaining compliance continuously. “Legion manages the complexities of labor laws by proactively ensuring scheduling, time, and attendance are in compliance with local guidelines,” the report states. “This [functionality] reduces risk and promotes peace of mind for the interviewees’ organizations.”
Compliance is not only about adherence to laws; it’s also about fairness to workers. The Legion WFM platform uses AI and machine learning to help businesses comply with recent legislation regarding predictive scheduling and a fair workweek. “With its built-in compliance flags, accurate forecasting, optimal workload computation, and data-driven scheduling, the Legion [WFM] platform enabled organizations to optimize labor to avoid overtime hours,” the Forrester report states.
More specifically, Legion WFM addresses the need for continuous compliance with a full range of capabilities, including:
A library of preloaded compliance templates makes it easier to keep pace with fast-changing predictive scheduling laws across the U.S.
Immediate notification alerts whenever a manager edits a schedule that could introduce a compliance violation.
AI-driven automated scheduling incorporates compliance regulations, so employees are scheduled to comply with the requirements.
Time and Attendance reporting to ensure any unplanned clock activity is flagged. Alerts and reports for out-of-compliance areas, including overtime pay, are built-in, with detailed metrics to show if managers violate compliance policy.
Legion WFM Helps Customers Reduce Compliance Risk
Comments from interviewees in the Forrester Research study underscore the real-world value of these capabilities. An executive director of information systems at one large retailer said, “Every organization has their own definition of what compliance is and what those rules are, such as ‘I only want to use 10 percent of overtime’ or something like that. Legion allows us to lock in all those rules within the system, which constantly keeps us in compliance.”
The director of human resources at another major retail organization got a 10% reduction in overtime pay. They got proactive visibility into staffing needs from improved forecasting as well as the automated compliance rules in Legion WFM. This interviewee said: “We’ve definitely had a reduction in overtime, especially in California with double time. Because of the compliance flags that are built into the scheduling tool in Legion, a manager can see if they’ve scheduled someone in California for more than eight hours, for example, and they can reduce that shift and add that half hour somewhere else. Mangers and payroll really have more control and oversight into adjusting the workforce.”
Another interviewee from a retail organization reported “millions in savings” from avoiding premium fees due to Legion WFM capabilities. “Legion reacts quickly to the onslaught of legislation being passed for workforce compliance. They are doing a great job of keeping up, and our previous solution did not even come close,” said the director of store operations.
Read the Full Report to Learn How You Can Manage Compliance
The Forrester TEI study found that Legion manages the complexities of state and local labor laws while enabling businesses to optimize labor spend and deployment based on highly accurate demand forecasting. That helps companies minimize risk and avoid potential fines for meal and rest breaks, schedule changes, and clopening premium pay.
Read the full Forrester TEI study (*based on customer interviews and a composite organization of 10,000 employees moving from a legacy WFM system over three years) for details about the compliance benefits and other tangible, quantified results that retail organizations are achieving with Legion WFM, including:
- ROI of 1,345%, with a total NPV of $13.39 million* over three years for the composite enterprise described in the study
- $6.1 million in savings* (46% of total savings) over three years due to more accurate demand forecasts
- 10% reduction in overtime pay due to automated handling of compliance violations in schedule creation and execution
If you have any questions about how your business can benefit from using Legion WFM, we’d love to show you. Please request a demo.