The finance division miscommunication that price this firm

A latest court docket case highlights the expensive penalties of a finance division miscommunication.

Accounts Payable and Payroll staffers doubtless work carefully collectively. They even have some overlapping duties.

But when one group isn’t speaking the precise info with the opposite, it might have expensive compliance penalties.

One financial institution is presently studying that because it defends its actions in court docket over an worker additional time declare.

The true kicker? If A/P and Payroll had shared data they tracked with one another, this complete mess might have been averted.

Take a look at the specifics of this cautionary story.

Lunch breaks the offender

Mortgage mortgage officers for a financial institution within the Pacific Northwest claimed they deserved additional time for additional hours they had been on the clock, together with throughout lunch.

To assist their declare, they defined that they had been compelled to write down “8 hours” or “8am to 4pm” on their timesheets, even when they labored extra hours than that.

The employer fired again: How might it know whether or not an worker labored by lunch if that particular person didn’t document it on his or her timesheet?

A legitimate protection … besides that the financial institution’s regional managers had permitted the mortgage officers’ expense stories, full with receipts, displaying the workers at enterprise lunches or collaborating in different work-related actions!

That saved the financial institution from getting the workers’ additional time declare dismissed.

Stopping expensive miscommunications in your watch

It’s straightforward sufficient to see how a finance division miscommunication like this will occur.

Each one in all your departments is extraordinarily busy with their very own duties; they don’t have time to be sharing tons of data all day. Particularly with year-end quick approaching.

However as quickly as this employer bought wind of a doable compliance
declare within the works, it ought to have reached out to all departments that may know one thing.

Granted the financial institution might have needed to opened its pockets wider for extra additional time pay. However it might have saved them the expense and trouble of a authorized battle.

Ensure that along with common conferences inside every finance perform that you simply all contact base as a complete group periodically.

Cite: Bolding v. Banner Financial institution, C17-0601RSL, U.S. D.C., W.D. Washington, 9/13/21.

Jennifer Azara

Jennifer, a member of the CFO Each day Information workers, has coated enterprise and finance for greater than 22 years. She has written for CFOs, credit score and collections professionals and accounts payable practitioners and has spoken at business conferences on gross sales and use tax compliance.

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