Indian Textile Machinery Industry

Labor Industry

Labor Industry

Being an employer is a daunting task. Hundreds of employment regulations, insurance guidelines, Senate bills and Federal Acts (such as FMLA, FLSA, HIPAA, TEFRA and FEHA, to name a few) distract business owners from focusing on their core operations and profitability. In particular, California employers need to be aware that California Labor Law differs from federal law in significant ways that can make life even more difficult, if not downright treacherous, for businesses with limited human resources expertise.

Although the Fair Labor Standards Act sets a minimum standard of protection for employees working in the USA, individual states are permitted to extend the Act to provide a higher degree of protection to employees in that state. California has taken full advantage of that facility, and there are many aspects of this act that California has applied more liberally than practically any other state.

Take overtime law for example. California labor law requires an employer to pay an employee overtime after 8 hours work in one day at 1.5 times the normal rate, and after 12 hours work in any one day at twice the standard rate. However, this does not apply to ‘exempt’ employees, such as those involved in managerial or intellectual work. Federal law only requires time and a half to be paid for any time worked over 40 hours in a week. Read the rest of this entry »

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California Labor Law Challenges

Labor Industry

Labor Industry

Being an employer is a daunting task. Hundreds of employment regulations, insurance guidelines, Senate bills and Federal Acts (such as FMLA, FLSA, HIPAA, TEFRA and FEHA, to name a few) distract business owners from focusing on their core operations and profitability. In particular, California employers need to be aware that California Labor Law differs from federal law in significant ways that can make life even more difficult, if not downright treacherous, for businesses with limited human resources expertise.

Although the Fair Labor Standards Act sets a minimum standard of protection for employees working in the USA, individual states are permitted to extend the Act to provide a higher degree of protection to employees in that state. California has taken full advantage of that facility, and there are many aspects of this act that California has applied more liberally than practically any other state.

Take overtime law for example. California labor law requires an employer to pay an employee overtime after 8 hours work in one day at 1.5 times the normal rate, and after 12 hours work in any one day at twice the standard rate. However, this does not apply to ‘exempt’ employees, such as those involved in managerial or intellectual work. Federal law only requires time and a half to be paid for any time worked over 40 hours in a week. Read the rest of this entry »

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Use Timecards For Payroll & Employee Schedules to Plan Labor Costs

Labor Industry

Labor Industry

It is important to pay payroll expenses from the time and attendance system, and not the theoretical labor schedule. This attendance system tracks the “actual time” worked by business employees. Each staff member should have their own “timecard”, although computer systems have improved these paper systems over the years. At a minimum, the timecard can be a paper card which has the time and date the employee arrived for work, and the time and date the employee left work, printed or stamped on the card.

o If management pays the employee directly from the theoretical work schedule and the employee arrived later than scheduled, then the business is paying too much to the employee – reducing profit.

o If the employee arrived earlier than the theoretical labor schedule suggested, the business will not lose any money by paying from the schedule – however, a number of regulations are violated by not paying the employee for actual time worked.

Employees, in most industries, are notorious for arriving to work 15-minutes earlier than scheduled, or leaving 10-minutes later than scheduled, requiring that employers pay appropriately for worked time. Read the rest of this entry »

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