Welcome to Midrange Software Inc.'s e-Newsletter
FOR THE MONTH OF: March 2003

• Learn How Good Record Keeping Can Prevent Costly FLSA Lawsuits
• The Latest ITPayS Payroll System Release Includes More Features to Simplify Payroll Processing

Learn How Good Record Keeping Can Prevent Costly FLSA Lawsuits
In 2001, class action suits under the Fair Labor Standards Act (FLSA) have cost Starbucks $18 million, Bank of America $22 million and Rite Aid $25 million, according to an HR Magazine report. The FLSA has a two-year statute of limitations and three for willful violations. In addition, violations automatically incur double damages calculated for unpaid wages plus an equal amount of liquidated damages. The math adds up exponentially if your talking about two years back pay that pertains to an entire class of workers.

To avoid being caught unaware, legal experts say employers need vigilance and accountability over wage and hour compliance. "Somebody's got to be in charge," says San Francisco attorney R. Brian Dixon, head of the wage and hour practice for the law firm of Littler Mendleson. "The most important thing a company can do is to say that (wage and hour compliance is an ongoing responsibility and it is someone's job." Day to day monitoring and an annual wage and hour audit is recommended to avoid non-compliance issues.

Human Resources Management Systems (HRMS) such as PERMS Millennium offer the perfect solution to maintain time and labor records. Every time and attendance transaction is monitored and all of the data is automatically integrated with salary administration and payroll. PERMS Millennium recognizes whether or not employees for each job class is exempt or non-exempt. The HRMS automatically calculates overtime if it applies to an employee. Furthermore, PERMS Millennium will indicate if any FLSA compliance issues arise ahead of time to prevent costly litigation situations. PERMS Millennium is indispensable when the following red flag conditions occur:

• Significant process changes or a reorganization affecting more than a few job classifications
• Changes in federal or state law
• An abrupt increase in hours worked by employees in a job classification that is neither clearly exempt nor non-exempt

In addition to the benefits of remaining compliant and avoiding costly lawsuits, administrative control is gained from automatic data collection, centralized data storage and accurate reporting. PERMS Millennium streamlines human resources processes, eliminates paperwork and frees up more time for HR to focus on strategic functions that can increase revenue. Another benefit is the reporting power that PERMS Millennium provides. Since all of the personnel information is integrated with the time and labor data, accounting for labor invoices is automated, project management and employee performance can be measured.

Implementing PERMS Millennium can save companies millions of dollars by assuring compliance, streamlining workflow, and providing powerful reporting tools.

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• Supports unlimited deductions
• Manages Wage Assignments by prioritizing tax liens, child support and other wage garnishments
• Directly transfers child support dollars to state disbursement units
• Provides Tax table updates
• Controls payroll across multiple-states and multiple companies
• Accommodated multiple currencies
• Supports wage progressions
• Automates benefit deduction entry and calculation
• Removes the deduction files for payroll runs
• Includes built-in government forms
• Includes powerful reporting tools
• And More!

Benefits

• Saves time by automating payroll processing functions
• Reduces payroll costs
• Provides accurate calculations
• Eliminates dual data entry and reduces manual data entry
• Provides in-house control and eliminates outsourcing fees
• Provides powerful reporting

ITPayS is platform independent and seamlessly integrates with PERMS Millennium Human Capital Management System