Expert: Shirley McAllister, CPP, PHR - 2/9/2011

Question
Greetings,
We are located in New York State and pay bi-weekly. If an employee is underpaid for an entire shift due to their failure to log in and/or out in our time-keeping system, is it legal to make them wait until their next pay for this correction, or must we make them whole sooner? If an employee is missing an in and/or out punch, may we use their paid time off balances instead?

Thank you in advance!

Answer
You cannot use paid time off if the employee is missing punches. If the employee was there working and the supervisor and co workers saw the employee there than that employee must be paid his wages for the work done. The Department of Labor puts the burden on the employer to know when the employees are working whether or not they turn in a timecard they are to be paid. This is the responsibility of the supervisor.

If payroll is already processed when the error is discovered than you can pay it on the next payroll run. If payroll is not processed it should be corrected and paid. My supervisors have to okay every timesheet and if the hours look wrong they get with the employee and have them corrected before it goes to payroll so no one is paid incorrectly.


Shirley