Union-based construction and manufacturing companies don’t have it easy when it comes to writing paychecks. Union rules have a major impact how timekeeping and payroll are processed. Complex calculations need to be applied to each employee, making it particularly challenging to manage time and payroll records accurately.
As regulations place an increasing emphasis on complying with union contracts and bargaining agreements, companies with unionized employees are under the gun to flawlessly manage their payroll and time-and-attendance records.
For many unionized companies, laborious manual calculations and unwieldy spreadsheets have simply become a way of doing business. Union-specific pay rates are entirely managed by hand over dozens of hours, every pay period. But some companies are finding ways to automate their pay policies and business rules. These contractors are saving enormous amounts of time and consistently avoiding labor disputes.
How Can Automation Make Payroll Easier?
Automation makes it possible to accommodate the complexities of union pay rules and regulations. But to do it effectively, you need time-and-attendance and payroll systems that can robustly manage the unique challenges of union-based companies. If you’re looking for an end-to-end system to handle your company’s unionized pay requirements, make sure it can handle these five critical challenges:
- Incentive pay. Many compensation policies are based on the ability to earn more income, depending on factors such as seniority, productivity, union affiliation, and job. Make sure your payroll automation system can adeptly handle the pay adjustments for each of your employees.
- Step or Progression pay. Many union-based companies have defined “steps” that reward an employee with a higher pay rate for accomplishing a certain amount of time with the company or seniority within a given union or job.
- Payment of non-worked time/PTO. Does your company have specific rules for paying non-worked time? If so, your automation software will need to manage this calculation. Some common policies include using a “rolling” time period (e.g., three-week average) or other factors to pay out PTO.
- Paid-time-off policies. Many unions require PTO to be granted based on the number of hours worked in the previous year, in certain pay codes, or other contract-specific requirements.
- Fair Labor Standards Act (FLSA). FLSA regulations are constantly changing, and it’s very challenging to stay on top of the latest rules. Accurately calculating the FLSA weekly overtime rate can be a burden for unionized companies. Make sure your automation system is updated as frequently as the government regulations are.
Automation Payroll Software for Construction and Manufacturing Companies
IDI’s Time Bank robustly manages all of the payroll complexities that union companies deal with. Time Bank is a data integration system that integrates with your current time-and-attendance and payroll systems. It complements these systems’ timekeeping and payroll calculations and automates your most complex policies.
Unionized 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.