Since the word “timecard” can encompass a variety of functions and capabilities, it’s important to know what “timecard” means in Justworks. Below, discover what Justworks’ timecards do and what they don’t do.
On a basic level, Justworks’ timecards help employers pay hourly and non-exempt employees. Timecards allow admins to record all of an employee’s hours worked — including overtime hours — so they are paid all regular and overtime wages correctly. So first, a refresher...
Exempt Employees, Non-exempt Employees & Overtime
The Fair Labor Standards Act (FLSA) and applicable state law generally require employers to pay employees at least the applicable minimum wage for all hours worked and overtime pay according to applicable federal, state, and local laws. Some employees are exempt from the FLSA and state minimum wage and overtime requirements (exempt employees), and others are subject to those requirements (non-exempt employees). In order for an exemption to apply, an employee's job duties and compensation must meet all applicable requirements of the FLSA, Department of Labor regulations, and applicable state law.
Employers are required to classify employees as either exempt or non-exempt at the time of hire.
The simplest explanation for the difference between an employee classified as exempt and an employee classified as non-exempt is that exempt employees do not qualify for overtime and/or minimum wages. However, there are many other details to consider for exempt and non-exempt employees.
This blog post offers some guidance and best practices on classifying employees as exempt or non-exempt.
Although non-exempt employees typically receive hourly pay, employers can pay them on a salary basis and pay applicable overtime.
Under federal law, when a non-exempt employee works more than 40 hours in a workweek, overtime must be paid at 1.5 times the employee’s regular rate of pay. For example, if an employee worked 60 hours, they would receive their regular rate of pay for 40 hours, plus an additional 20 hours at the overtime rate.
Some states and local jurisdictions have their own overtime requirements, which may provide greater protection for employees than what is provided under the FLSA. Generally, where federal, state, and local laws conflict, the law that is most beneficial to the employee prevails.
This is where timecards come in. If you’re not recording regular and overtime hours for your non-exempt employees in Justworks, whether hourly or salaried, then our system won’t know when to pay them overtime (and overtime won’t be reflected on their paystubs).
Paying Non-Exempt Employees
In the Justworks system, employers pay non-exempt employees on either a biweekly or weekly basis. This is to support your compliance obligations to pay overtime as required for non-exempt employees. By filling out the timecards, you alert Justworks about when to add overtime payments to a pay period.
Both hourly and non-exempt salaried employees are paid in Justworks through timecards. In timecards, admins can enter or edit regular and overtime hours for their team. Justworks doesn't determine which hours are overtime hours, or the appropriate pay rate according to applicable law. Admins will need to input overtime hours and indicate the overtime rate — either the highest rate or the weighted average. In certain jurisdictions, some overtime hours are paid at double-time rate.
Admins also have the ability to enter in other amounts as needed. Doing this helps to ensure your employees are paid accurately through Justworks. As an admin, you will receive reminders to fill out the timecards for your team.
Justworks’ timecards do not track time and attendance. In other words, we don’t track start and stop times, or when an employee is on the clock and working, versus taking a break or off for the day. If you need to track time for your team, we recommend Justworks Hours to do so.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.