If you're in the construction business, you probably employ union workers, which means you have union rules to deal with every payday. Union rules involve complex pay policies and calculations that make timekeeping and payroll particularly challenging to manage. Many construction companies try to avoid taking union jobs for this very reason.Most contractors pursue union work from time to time, and that means you need to be prepared to handle union pay accurately, easily and reliably. Some of the payroll challenges include:
- Union pay rates. Like a prevailing wage, the union rate is the required hourly rate that you must pay each employee to be in compliance with the rules of the specific union. The rate is determined by the union, the employee's seniority level in the union and their role. It's also common for required premiums to be paid on top of the hourly union rate if union members work with hazardous material, perform evening or weekend work, or meet other requirements.
- Union benefits. Union members receive mandated benefits defined in the collective bargaining agreement (CBA) that you must pay.
- Union deductions. In effect, as the employer, you're responsible for paying the union dues, which are deducted out of your employees' paychecks. Union deductions are based on an hourly rate or on the employee’s gross earnings.
If an employee is subject to overtime pay or works under varying job roles during a pay period, your union calculations can be incredibly complex. Most time-and-attendance systems aren't designed for such complexities.
Many unionized companies 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.
Make Union Pay Rules Easy
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.
IDI can robustly automate your union calculations and payroll policies! Our Contractor Central™ application is designed for companies that employ unionized workers. Contractor Central removes the need to rely on time-consuming and error-prone manual calculations for compliance.
When Contractor Central is run at the end of the pay period, it retrieves the time and labor information from your time system and associates the specific rates of pay, including premiums and benefit earnings, with the union, job, and worker classification. After determining rates, the application calculates the weekly average rate of pay used for all overtime hours, in accordance with FLSA guidelines.
With the click of a button, the calculation is made, and the results are passed to payroll.
IDI Can Meet Your Unique Challenges
IDI’s Contractor Central robustly manages the complexities of union companies. Contractor Central is a data integration system that integrates with your current time-and-attendance system to complement timekeeping and payroll calculations, and automate your most complex policies.
Union companies that use Contractor Central find their time savings increase and their calculation errors dramatically decrease. The application also helps reduce labor disputes, government fines and lawsuits. All of this means greater peace of mind for you each payday.
Ready to make union payroll rules easy? Contact us for a personalized demo of Contractor Central!