US: Companies often illegally alter employee timesheets

Date: 4 Apr 2004

According to the New York Times, major companies in the US often alter electronic records of employee hours in order to avoid paying overtime. Quoting specific cases from Toys 'R' Us and Family Dollar, the paper said that although companies have policies against such practices abuse was common.

The practice, known as shaving time, is the subject of a growing number of lawsuits from disgruntled employees against businesses. A jury recently found that Taco Bell managers had routinely engaged in the practice, and Wal-Mart has been accused by more than a dozen former employees of doing the same.

The approach towards store managers, where pressures are high to keep costs down and sales up, may increase the incentives for individuals to take part in illegal practices. For many, their success in this area is an increasing part of their job security and compensation package.

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