attendance

UPDATE

Best Practices in Employee Time and Attendance

 

July 2015

ACA is Here to Stay—Now What?

This issue's articles focus on the 4 things businesses need to do after the SCOTUS ACA ruling, and what the Amazon security line ruling means for FLSA claims.

 
 
health care reform

ACA is Here to Stay

4 things businesses need to do after the SCOTUS ruling

On June 25, the Supreme Court ruled to uphold federal tax subsidies for qualifying workers using state or federal insurance exchanges.

The subsidies are a central part of the ACA. If the Supreme Court had dissented (allowing subsidies only for workers with access to state exchanges—16 states in total), policymakers would need to rethink much of the Act.

So, what does this mean for businesses? The Affordable Care Act is here to stay. Here are four things employers need to do to prepare:

  1. Know if you qualify as an applicable large employer. The ACA only applies to applicable large employers (ALE). You're an ALE if you have at least 50 full time or full-time equivalent employees during the previous calendar year. (If you're not an ALE, be sure to look into ACA tax credits for small businesses.)
  2. Establish your determination process. The determination process gives ALEs time to identify which employees qualify as full time (or full-time equivalent) under ACA and must be offered coverage. Employers can customize their process within the boundaries set by the IRS.
  3. Know your reporting obligations. Starting in 2016, ALEs must file new forms with the IRS regarding the health care coverage they provide to qualifying employees. Knowing what information those forms require will save you time—and fines.
  4. Have a long-term strategy to limit costs. Look ahead to long-term strategies to reduce ACA-related costs. For some companies, it means managing part-time workers more effectively to reduce accidental full-time equivalency. For others, it may be cheaper to pay ACA penalties than offer coverage. Explore your options.

With the ACA moving full steam ahead, stay compliant by knowing your rights, options and obligations.

For more information on streamlining ACA compliance, visit Attendance on Demand's ACA resource page.

 
workers in line

No Overtime in the Security Line

Amazon won't pay overtime for employee security screening

According to the Supreme Court, Amazon doesn't need to compensate employees for time spent waiting in the security screening line before and after their shifts.

A lawsuit brought by employees staffing an Amazon.com warehouse through Integrity Staffing Solutions claimed they should be compensated for the time they spent in long lines waiting for a mandatory security screening to uncover theft.

But the Supreme Court said no.

"The Court ruled that compensability does not turn simply on whether a time-consuming activity is required by the employer," said Wiggin and Dana LLP. "Rather, only those activities that enhance the safety or effectiveness of an employee's work… are compensable."

Because the security checkpoint is meant to deter theft only, the Supreme Court did not view it as helping to make employees' primary activities safer or more effective.

"This case serves as an important reminder [to employers]," continued Wiggin and Dana LLP. "In order to avoid a wage claim under the FLSA, employers [must] carefully consider whether any activities performed before or after an employee's principal tasks are 'tied to the productive work that the employee is employed to perform,' and, if so, compensate accordingly."

To read the full article, visit jdsupra.com/

 
 

Ask an Expert

One of our locations is struggling with absenteeism. Can a time and attendance system help?

Absolutely. Attendance on Demand features a points system that can award or subtract points for specific actions. For instance, employees could receive a point each time they are absent but subtract a point for perfect attendance. Once an employee reaches five points, disciplinary action can be taken. Using points can discourage unexcused absences and help lower overtime costs.

For more information, visit attendanceondemand.com/

Have a question about time tracking and scheduling? Ask an expert and we'll do our best to answer

 
 

In the News

Timely news in HR and payroll from around the web

Employees worked 40 hours a day? Audit reveals overtime abuse by Amtrak workers totaled nearly $200 million last year
source: freebeacon.com

President Obama bumps up maximum salary for overtime from $23,660 to $50,440
source: time.com

4 business benefits of payroll transparency
source: entrepreneur.com