The blog of Arshad Merali

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Monday, November 12th, 2007

Time worked but not paid

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I’ve noticed there are still companies out there that round employee’s time (punches, swipes, whatever you want to call it).

I think, back in the day, it was considered a ‘feature’ of a good time capture system so that employer’s would no longer have to pay people for time not worked. And I agree with this concept… nobody should get paid for time they did not work. If an employee shows up 5 or 10 minutes late for their shift, then their pay should be representative of this.

But the flip side is also true. If an employee shows up 5 or 10 minutes early and actually starts working, their pay should be representative of this. Many organizations round this up to the scheduled start time and chalk it up to the notion of “I didn’t ask her to come in early and start early so why should I pay her?”. While in theory this might sound appropriate, it somehow gets lost in practice.

I know that this type of ‘rule’ was implemented generally to prevent people from abusing the system and coming in early only to pick their nose on their employer’s dime. As an employer, I certainly know this frustration and agree that its not fair. But once again, I come back to the point that not paying an employee for time they have worked, is not fair either.

As employers, we need to come up with a scheme that is fair and equitable for both sides. And I guarantee if we don’t, the courts will devise a mechanism that will be onerous, punitive and cumbersome. And that’s advice you can take to the bank!

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