Navigating Employment Compliance Rules – Reducing Overtime and Doubletime
by Justin Siu
March 25, 2021
We recently shared our on-demand webcast, Transforming Workplace Compliance With AI. Today, we’ll dive deeper into how you can use Legion WFM to reduce overtime and doubletime.
Overtime and Doubletime Compliance Rules
Overtime and doubletime are one of the most common compliance violations. Legion Scheduling and Shift Offers factor in state/county/city-specific overtime/doubletime rules automatically to enable employers to optimize labor expenses. Here are just a few examples of specific rules that Legion WFM manages in scheduling and timesheets:
- California has daily OT, weekly OT, and a 7th-day OT
- Kentucky has a 7th-day OT
- Nevada has a rolling 24-hour daily OT
- Colorado has 12-hour daily OT
Legion Auto Scheduler ensures overtime/doubletime isn’t included in the schedule. When managers manually update the schedule, the overtime/doubletime flag is shown in real time whenever a change triggers it.
- When handling shift offers such as open shifts, employee swaps, and covers, Legion WFM automatically enforces location-specific overtime/doubletime rules and doesn’t offer or allow accepted shifts if they’re triggered.
- The Legion Timesheet automatically aggregates and assesses employee hours based on location-specific overtime/doubletime rules.
- Legion WFM also offers flexibility without the risk of overtime/doubletime. For example, employers could offer employees the ability to work longer shifts – like four 10-hour days without incurring daily overtime/doubletime.
Traditionally, scheduling with employee-specific preferences is a time-consuming and error-prone process. But Legion WFM enables managers to record preferences from an employee-averaging agreement and then automatically factors the preferences in scheduling.
After employees clock into their scheduled shifts, Legion WFM correctly computes the amount of overtime/doubletime an employee should get, so the employee is paid appropriately. Also, in the timesheet, managers can compare schedule overtime/doubletime hours compared to the actual clocks to check if they are on budget. Legion Scheduling and Time and Attendance correctly compute overtime based on various state rules, such as California, Nevada, Colorado, and Kentucky (shown above).
How It Works
When a location has a 4×10 agreement enabled, a manager can specify employee preferences as 4×10 or 5×8, where 4×10 means overtime is paid if the employee works more than 10 hours/day, doubletime for more than 12 hours/day, and overtime if total regular hours are more than 40 hours/week.
Legion Scheduler automatically matches employee preferences and assigns employees on a 4×10 agreement to the 10-hour shifts and employees on a 5×8 agreement to 8-hour shifts. Employees on a 4×10 agreement can still be assigned to shorter shifts if the 10-hour shifts have been filled.
How Can Legion Help You?
Legion WFM enables teams to stay on budget and decrease overtime/doubletime and compliance burdens. Numerous clients, like SMCP, a luxury retailer, have told us that they’ve cut scheduling time in half, so managers can spend more time with customers and their teams.
With a single click, managers can create fully-compliant and personalized schedules for each of their employees. Managers can automatically offer open shifts to employees without worrying about whether they’re available that day or if they’ve already worked too many hours. Legion WFM understands those factors and only suggests eligible, available employees for the extra shifts.
And an employee who’s eligible and wants to pick up extra shifts can easily do it with a few taps on their mobile phone. This added flexibility makes it easy to accommodate last-minute schedule changes, like covering for a sick employee, in an easy and compliant way.
AI-driven optimization automatically generates the schedules and targeted offers for open shifts within seconds. And the system is self-learning and continually improves over time. Employees can indicate their work preferences, such as the days they want to work, maximum hours, hours per day, the number of shifts they want to work, and more. Those preferences are automatically matched with the needs of the business. And managers have a complete history of schedules and revisions. They’re automatically notified of potential violations, and they can ensure fair allocation of work.
To learn more, sign up for our quarterly Compliance Watch bulletin, which is designed to keep you updated on the latest changes in compliance regulations and labor laws.