Union-based companies have complex considerations that make timekeeping and payroll particularly challenging to manage accurately. With an increased emphasis on compliance with union contracts, bargaining agreements and government regulations, companies with unionized employees are under heavy burdens to flawlessly manage their payroll and time-and-attendance records.
Many unionized environments have resigned themselves to laborious manual timekeeping and payroll processes or using spreadsheets for determining union specific pay rates. But more and more companies are looking for ways to automate their pay policies and business rules to save time and avoid labor disputes.
Automation May Be Your Solution
It is possible to accommodate the complexities of unionized environments through automation. But to achieve this goal, the time-and-attendance and payroll systems must be able to robustly manage the unique challenges of union-based companies. If you’re looking for an end-to-end system to meet your company’s pay requirements, make sure it can handle challenges like these:
- Incentive pay: The foundation of many compensation policies is the ability to earn more income based on factors such as seniority, productivity, union affiliation and job.
- Step or Progression pay: Many union-based companies have defined “steps” when an employee receives a higher rate of pay based on time with the company or seniority within a given union or job.
- Calculating payment of non-worked time/PTO: Many union companies have specific rules for paying non-worked time. Some common policies include using a “rolling” time period (e.g., three-week average) or other factors to pay out vacation or other paid time off.
- Managing Paid Time Off (PTO) policies : Many unions require PTO to be granted based on number of hours worked in the previous year, in certain pay codes or other contract-specific requirements.
- Fair Labor Standards Act (FLSA) compliance: With the complexities of these unique pay policies, accurately calculating the FLSA weekly overtime rate becomes a greater burden for unionized companies.
IDI Can Meet Your Unique Challenges
IDI’s Time Bank robustly manages the complexities of union companies. Time Bank is a data integration system that integrates with your current system, such as ADP Workforce Now®, to complement their timekeeping and payroll calculations and automate your most complex policies.
Union companies that use Time Bank find their time and cost savings increase and their manual calculation errors dramatically decrease. Time Bank also helps reduce labor disputes, government fines and lawsuits.