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View Full Version : TRU, WM, Taco Bell stealing employees pay by shaving hours



JediTricks
04-04-2004, 05:19 PM
Someone just emailed me the following article and I found it shocking. Having worked in retail for only a few years, it never occurred to me how prevalent this problem could be. The places I worked used computer-based clock-in systems, so I never had a paper trail that showed whether I was getting ripped off or not, but it never even entered my mind at either job that this was not only possible, but maybe even management policy. Time shaving seems dishonorable and disrespectful to both employees and the customers - customers are expecting an honorable company who presents employees as extensions of that company, not suckers who can be easily bilked out of their hard-earned wages.



NY TIMES

April 4, 2004

Altering of Worker Time Cards Spurs Growing Number of Suits

As a former member of the Air Force military police, as a play-by-the-rules guy, Drew Pooters said he was stunned by what he found his manager doing in the Toys "R" Us store in Albuquerque.

Inside a cramped office, he said, his manager was sitting at a computer and altering workers' time records, secretly deleting hours to cut their paychecks and fatten his store's bottom line.

"I told him, `That's not exactly legal,' " said Mr. Pooters, who ran the store's electronics department. "Then he out-and-out threatened me not to talk about what I saw."

Mr. Pooters quit, landing a job in 2002 managing a Family Dollar store, one of 5,100 in that discount chain. Top managers there ordered him not to let employees' total hours exceed a certain amount each week, and one day, he said, his district manager told him to use a trick to cut payroll: delete some employee hours electronically.

"I told her, `I'm not going to get involved in this,' " Mr. Pooters recalled, saying that when he refused, the district manager erased the hours herself.

Experts on compensation say that the illegal doctoring of hourly employees' time records is far more prevalent than most Americans believe. The practice, commonly called shaving time, is easily done and hard to detect - a simple matter of computer keystrokes - and has spurred a growing number of lawsuits and settlements against a wide range of businesses.

Workers have sued Family Dollar and Pep Boys, the auto parts and repair chain, accusing managers of deleting hours. A jury found that Taco Bell managers in Oregon had routinely erased workers' time. More than a dozen former Wal-Mart employees said in interviews and depositions that managers had altered time records to shortchange employees. The Department of Labor recently reached two back-pay settlements with Kinko's photocopy centers, totaling $56,600, after finding that managers in Ithaca, N.Y., and Hyannis, Mass., had erased time for 13 employees.

"There are a lot of incentives for store managers to cut costs in illegal ways," said David Lewin, a professor of management who teaches a course on compensation at the University of California, Los Angeles. "You hope that would be contrary to company practices, but sometimes these practices become so ingrained that they become the dominant practice."

Officials at Toys "R" Us, Family Dollar, Pep Boys, Wal-Mart and Taco Bell say they prohibit manipulation of time records, but many acknowledge that it sometimes happens.

"Our policy is to pay hourly associates for every minute they work," said Mona Williams, vice president for communications at Wal-Mart. "With a company this large, there will inevitably be instances of managers doing the wrong thing. Our policy is if a manager deliberately deletes time, they're dismissed."

Compensation experts say that many managers, whether at discount stores or fast-food restaurants, fear losing their jobs if they fail to keep costs down.

"A lot of this is that district managers might fire you as soon as look at you," said William Rutzick, a lawyer who reached a $1.5 million settlement with Taco Bell last year after a jury found the chain's managers guilty of erasing time and requiring off-the-clock work. "The store managers have a toehold in the lower middle class. They're being paid $20,000, $30,000. They're in management. They get medical. They have no job security at all, and they want to keep their toehold in the lower middle class, and they'll often do whatever is necessary to do it."

Another reason managers shave time, experts say, is that an increasing part of their compensation comes in bonuses based on minimizing costs or maximizing profits.

"The pressures are just unbelievable to control costs and improve productivity," said George Milkovich, a longtime Cornell University professor of industrial relations and co-author of the leading textbook on compensation. "All this manipulation of payroll may be the unintended consequence of increasing the emphasis on bonuses."

Beth Terrell, a Seattle lawyer who has sued Wal-Mart, accusing its managers of doctoring time records, said: "Many of these employees are making $8 an hour. These employees can scarcely afford to have time deleted. They're barely paying their bills already."

In the punch-card era, managers would have had to conspire with payroll clerks or accountants to manipulate records. But now it is far easier for individual managers to accomplish this secretly with computers, payroll experts say.

Mr. Pooters, a father of five who left the Air Force in 1997 for a career in retailing, talks with disgust about photocopied Toys "R" Us records that he said showed how his manager made it appear that he had clocked out much earlier than he had.

"Unless you keep track of your time and keep records of when you punch in and punch out, there's no way to stop this," he said.

After leaving Toys "R" Us and Family Dollar, Mr. Pooters moved to Indiana and took a job as an account manager with Rentway, a chain that leases furniture and electronics. There, he and a co-worker, William Coombs, said, the workload was so intense that they typically missed four lunch breaks a week. Nonetheless, they said, their manager inserted a half-hour for lunch into their time records every day, reducing their pay accordingly.

"They told us to sign the payroll printouts to confirm it was right," Mr. Pooters said, describing a confrontation last November. "When we protested about what happened with our lunch hours, the manager said, `If you don't sign, you're not going to get paid.' "

Mr. Coombs said: "They removed our lunch hours all the time. We were told if we didn't sign the payroll sheets, we'd be terminated."

Larry Gorski, Rentway's vice president for human resources, said his company strictly prohibited erasing time. "As soon as we hear this is going on, we jump all over it," he said.

Shannon Priller, who worked at a Family Dollar store in Rio Rancho, N.M., sheepishly acknowledged that she sometimes watched her district manager erase her hours. "The manager and I would sit there and go over everybody's time cards," she said. "We were told not to go over payroll, or we would lose our jobs. If we were over, my hours would get shaved."

Some weeks, she said, she lost 10 or 15 hours, and her 6 a.m. clock-in time became 9 a.m. Patricia Bauer, a clerk at the store, said her paycheck was sometimes cut to under 30 hours on weeks when she worked 40.

Like Mr. Pooters, these women have joined a lawsuit that accuses Family Dollar of erasing time and requiring off-the-clock work. "It needs to stop," said Ms. Priller, who now cleans houses.

Kim Danner said that when she ran a Family Dollar store with eight employees in Minneapolis, her district manager urged her to erase hours so that she never paid overtime or exceeded her allotted payroll. Federal law generally requires paying time-and-a-half to nonmanagerial employees who work more than 40 hours a week.

Ms. Danner said her employees could not do all the unloading, stocking, cashier work and pricing of merchandise in the hours allotted. "The message from the district manager was, basically, `I don't care how you do it, just get it done,' " she said.

So she altered clock-out times and inserted half-hour lunch breaks even when employees had worked through them. "I felt horrible that I was doing this," she said. "I felt pressured, absolutely. If I refused, I would have been terminated easily."

After five months, she quit.

Sandra Wilkenloh, Family Dollar's communications director, declined to respond to the lawsuit, but said, "Family Dollar's policy is to fully comply with all wage and hour laws and to take appropriate disciplinary action in any case where we determine that such policy has been violated."

She said Family Dollar maintained a hot line that employees could call anonymously to report wage violations.

Rosann Wilks, who was an assistant manager at a Pep Boys in Nashville, said she was fired in 2001 after refusing to delete time. She said her district manager told her, "Under no circumstances at all is overtime allowed, and if so, then you need to shave time."

At first, she bowed to orders and erased hours. Some employees began asking questions, she said, but they refused to confront management. "They took it lying down," she said. "They didn't want to lose their job. Jobs are hard to find."

When she started feeling guilty and confronted her district manager, she said, "It all came to a boil. He fired me."

Bill Furtkevic, Pep Boys' spokesman, said his company did not tolerate deleting time.

"Pep Boys' policy dictates, and record demonstrates, that any store manager found to have shaved any amount of employee time be terminated," he said. He added that the company's investigation "revealed no more than 21 instances over the past five years where time shaving" had occurred.

More than a dozen former Wal-Mart employees said time records were altered in numerous ways. Some said that when they clocked more than 40 hours a week, managers transferred extra hours to the following week, to avoid paying overtime. Federal law bars moving hours from one week to another.

Wal-Mart executives acknowledged that one common practice, the "one-minute clock-out," had cheated employees for years. It involved workers who clocked out for lunch and forgot to clock back in before finishing the day. In such situations, many managers altered records to show such workers clocking out for the day one minute after their lunch breaks began - at 12:01 p.m., for example. That way a worker's day was often three hours and one minute, instead of seven hours.

Ms. Williams, the Wal-Mart spokeswoman, said Wal-Mart had broadcast a video to store managers last April telling them to halt all one-minute clock-outs. Under the new policy, when workers fail to clock in after lunch, managers must do their best to determine what their true workday was.

In interviews, five former Wal-Mart managers acknowledged erasing time to cut costs. Victor Mitchell said that as an assistant manager in Hazlehurst, Miss., in 1997, he frequently shaved time.

"We were told we can't have any overtime," he said. "It's what the other assistant managers were doing, and I went along with it."

Mr. Mitchell said the store's manager ordered them to stop. But he said that in 2002, after becoming manager of a Wal-Mart in Bogalusa, La., a new district manager ordered him to erase overtime. He said he refused.

Ms. Williams said Wal-Mart had increased efforts to stop managers from shaving time or allowing off-the-clock work.

Wal-Mart has circulated a "payroll integrity" memo, saying that any worker, "hourly or salaried, who knowingly falsifies payroll records is subject to disciplinary action up to and including termination."

Employees at Wal-Mart and other companies complain that they receive no paper time records, making it hard to challenge management when their paychecks are inexplicably low.

Ms. Danner, the former Family Dollar manager, praised the system at the McDonald's restaurant she managed for seven years. At day's end, she said, employees received a printout detailing total hours worked and when they clocked in and out.

"We never had any problems like this at McDonald's," she said.

Exhaust Port
04-04-2004, 05:42 PM
I came across this article today as well. I, like many others, spent a few years working at similar outfits if not these specific folks. Myself, I spent about a year at TRU but I never thought to closely track my time there to see if I was getting what I thought I should. At least they've caught on to the scam. I hope the come down on these rogue outfits hard.

scruffziller
04-04-2004, 06:40 PM
Oh yea. At WM they have really cracked down on the working off the clock thing and making sure to fill out time adjustment forms (to get paid that is) if a manager even so talks to you about work when off the clock. Even if it is 36 seconds!:D I filled one out and he signed it. We even have computer learning module about the whole thing, the "YOU'VE EARNED IT CBL:D . At least we know we can get WM by the "you know whats" if we have to in this way.
They don't even seem to have us cut time during the week anymore since this all went down as much. Meaning having us stop work a half hour earlier. Not actually deleting actual hours worked.

stillakid
04-04-2004, 07:44 PM
Unfortunately the practice isn't just limited to retail. On one Warner Bros. feature I worked on, it was quickly discovered that Accounting was shorting many of the checks for the crew. As studio accounting has always been suspect, it is standard practice for each crew member to double check the numbers when the check arrives each Thursday. Anyhow, an off-the-record Accountant told us that they were instructed to short the checks but if questioned about it, they were to fix them no questions asked. The plan, of course, is to catch employees sleeping at the switch so to speak. Corporations of all makes and models would just as soon screw the little guy in favor of lining their own pockets. It really makes you wonder how some people sleep at night. :confused:

Kidhuman
04-04-2004, 07:56 PM
Completely wrong. I know when I worked for Home Depot,if you went over 40 hours, you were written up. Even if the manager told you to stay. If you had 15 minuites overtime, you were in the office come Monday.

Another thing is too many people have access to the computers to get intotime records. When I worked Loss Prevention, I had access codes to them. Some people(I wouldnt blame companies on this) use these tools to make themselves look better and get promoted. There "bottom line" looks better, they can run an affective"ship". So they get promoted and move on.

Reefer Shark
04-04-2004, 08:34 PM
It really is a dusgusting practice..... No one should have to worry about getting burned from their employers.

I put in 10 years working for a fairly large, nationwide retail chain. Started at a store, and eventually ended up at the Mgmt office. With all the awards, and
promotion programs they had going there, I could easily see that stuff happening with some of those money hungry regional Mgrs and their stores.

This article really makes me thankful that I recently got a great job working for a small/medium sized company that actually cares about their employees.. The difference of atmosphere & environment is amazing!

Lowly Bantha Cleaner
04-04-2004, 09:55 PM
Wal-Mart involved in a scandal like this? The All-American, wholesome family image, bring the kids, we got everything you need, store? Is nothing sacred?

It's downright disturbing to see how far down the major retailers will stoop to in order to keep costs down. Whether it's shelling out slave wages to the laborer and company who supplies them their products, to paying their own employees a subsistence wage, to shaving the hours off a time sheet, it seems that there aren't any bounds that some greed driven companies won't cross.

One of the negative drawbacks to our economy is the obsession by corporations to drive up profits, or at least keep them from going backwards. A company could make a record $5 billion in profits one year, and the pressure is there to keep that same margin or greater for the company. If it doesn't, then stocks will be driven down, layoffs might occur, costs will be cut back. The sad part is that the company might have made $4 billion that next year instead of 5, bottom line they still made money!

I get paid per diem so I don't have to worry about an hourly wage, but I have encountered a few mistakes that I have benefitted from.

And the sad part is that the employees who work for those stores aren't making mad money. Minimum wage is overdue for an increase, and for most people who are working at these places, they are only making a step or two above that. For companies to pinch pennies by taking away rightfully deserving pay to their own employees is pretty low. The lesson is for the employee is to always keep track of your pay, for you cannot always trust the management for who you work for. As evidenced by the article, some are under substantial pressure to keep costs down.

2-1B
04-05-2004, 02:28 AM
I don't blame them for shaving wages, not at all. Given the amount of lazy and indifferent workers I've seen at these places, I'd say it's the employers getting screwed and so they have a right to make up for their lost money by taking it back by shaving a few hours.

arctangent
04-05-2004, 06:35 AM
I don't blame them for shaving wages, not at all. Given the amount of lazy and indifferent workers I've seen at these places, I'd say it's the employers getting screwed and so they have a right to make up for their lost money by taking it back by shaving a few hours.

you are joking, aren't you? if companies don't like lazy and indifferent workers, they shouldn't employ people who are lazy and indifferent. or perhaps they would get more out of their staff if they gave them an incentive to work harder, rather than screwing them.

Kidhuman
04-05-2004, 07:18 AM
I don't blame them for shaving wages, not at all. Given the amount of lazy and indifferent workers I've seen at these places, I'd say it's the employers getting screwed and so they have a right to make up for their lost money by taking it back by shaving a few hours.


Caesar, instead of putting their neck on the line and doing illegal activity, it would be much better tofire the lazy people and give a willing person a job. :beard:

Lowly Bantha Cleaner
04-05-2004, 10:25 AM
I don't blame them for shaving wages, not at all. Given the amount of lazy and indifferent workers I've seen at these places, I'd say it's the employers getting screwed and so they have a right to make up for their lost money by taking it back by shaving a few hours.

I wonder how much of these lazy and indifferent workers will change their attitude if they were paid a living decent wage by their employers? If I worked at one of these corporations my attitude would be pretty dreary if I knew that the higher-ups are constantly looking for ways to screw me by taking food off the table whether it is by cutting my benefits, salary or clamping down some other way just to save a few measly pennies. Give them an incentive as arctangent said, and maybe their attitude and morale will change for the better.

Mandalorian Candidat
04-05-2004, 10:32 AM
I don't blame them for shaving wages, not at all. Given the amount of lazy and indifferent workers I've seen at these places, I'd say it's the employers getting screwed and so they have a right to make up for their lost money by taking it back by shaving a few hours.

You get more flies with honey than vinegar. Fire 'em all and let unemployment sort them out.

2-1B
04-05-2004, 11:36 AM
Yes, yes, I was only kidding. :D

LOL, 4 people in a row quoted it. Hey, I pour over my earnings statement every week and I look for discrepancies. Thankfully I've never had a problem. Last week one of my friends/coworkers was shorted a half hour but it was an honest mistake on the parts of her and human resources. No shenanigans there.

since derek seems to be AWOL, I thought I would make that post in his honor. :crazed:

JON9000
04-05-2004, 12:42 PM
Never trust anyone whose interests are directly adverse to your own. The goal of the hourly worker is to make as much money as possible. The goal of the manager is to make sure you make as little money as possible.

The lawyer who gets one of these cases is going to make a mint. A multi-billion dollar company like Wal-Mart, which makes its profits on the backs of low wage employees, turning around and nickel and diming them in this way.

Really classy, guys. Congratulations. Keep rolling back prices.

darthvyn
04-05-2004, 01:53 PM
when i worked at the poverty barn there was an incident that occurred where an employee was asked to stay over 40 hours, thus entitling her to overtime, but when payroll was calculated the next week, it was deemed that the overage would be tacked onto the second week in the pay period, as she had only about 30 hours that week, thus making it regular pay, not time and a half... i don't even know if it ever got sorted out.

this kind of shady BS happens everywhere...

El Chuxter
04-05-2004, 02:11 PM
Must. . . suppress. . . desire to turn. . . this into. . . a political thread! :D

I have no doubt whatsoever that this goes on just about anywhere there are hourly workers, because it's almost impossible for the employees to detect. Only in rare cases where everyone keeps records, the manager is honest, or someone really slips up is it ever found out, though. :(

dr_evazan22
04-05-2004, 10:07 PM
I used to work for a big clothing company and had to run a store for a couple months because the SM got fired for falsifying time cards.

Old Fossil
04-06-2004, 09:06 AM
when i worked at the poverty barn there was an incident that occurred where an employee was asked to stay over 40 hours, thus entitling her to overtime, but when payroll was calculated the next week, it was deemed that the overage would be tacked onto the second week in the pay period, as she had only about 30 hours that week, thus making it regular pay, not time and a half... i don't even know if it ever got sorted out.

this kind of shady BS happens everywhere...

Yep, I've seen this happen, too, at the bookstore chain I worked for a number of years. It happened all the time. It involved manipulation of time cards: all the worker had to do was to initial the changes made on their card. That way, NOBODY got overtime pay, the managers got their bonuses, and it kept the management out of the DM's wrath. Each employee knew about the practice, and while they didn't like it, they accepted it as a routine procedure.

I've since moved on to a smaller company that actually pays people for the hours they work, when they work them.

chrisc
04-06-2004, 04:29 PM
I used to work at McDonalds and would get overtime and not get paid for it. anything that was over 40 hours was free labor. Also a friend of mine work at a place called Cummings Oil, and any thing over 40 hours is free labor. This makes me mad as HECK when they do things like this to people. We gotta have our money to. Lucky Me I got out of civilian Labor and joined the military. I would like to see them cut our pay. There would be all officers and no enlisted.

derek
04-07-2004, 05:35 PM
Yes, yes, I was only kidding. :D

LOL, 4 people in a row quoted it. Hey, I pour over my earnings statement every week and I look for discrepancies. Thankfully I've never had a problem. Last week one of my friends/coworkers was shorted a half hour but it was an honest mistake on the parts of her and human resources. No shenanigans there.

since derek seems to be AWOL, I thought I would make that post in his honor. :crazed:

that was funny! .............no respect i tell ya, no respect! :p

Tom Araya
04-15-2004, 07:05 AM
I run my own business, so imagine how furious I was when I found out I was shaving my own hours. :mad:








....errrr.... :ermm:






oh. :nerv:

arctangent
04-15-2004, 09:17 AM
I run my own business, so imagine how furious I was when I found out I was shaving my own hours. :mad:








....errrr.... :ermm:






oh. :nerv:

now THAT'S funny lol lol :crazed: !

Reefer Shark
04-15-2004, 10:46 AM
Tom Araya,

..............Slayer Rules!! :evil:

Deoxyribonucleic
04-15-2004, 11:58 AM
I run my own business, so imagine how furious I was when I found out I was shaving my own hours. :mad:








....errrr.... :ermm:






oh. :nerv:

Eeeehehehehhhheeeeeeeehehehheeeeeee! I think I like ya already!!


I know of a manager who was fired for altering overtime of employees so that the particular store where she worked would not get in trouble for having people go over their scheduled hours. :eek:

It took no time to get rid of her as soon as they found out, so there are respectable companies out there who do take action against such devious practices! As far as I know, the manager was solely on her own, to get the good graces of upper management, by "keeping" everyone under SPH (sales/hour) which is a BIG deal in retail. But not to the extent where you actually cheat people out of the hours they worked.

2-1B
04-15-2004, 01:08 PM
Kerry King might have something to say about your claim that you run your own company. :p

mabudonicus
05-14-2004, 08:39 AM
I can't post the link(it's on counterpuinch, a fairly political site), so PM me if you want it, but I just read an article that stated that WM secretly takes out life insurance policies on it's workers so that they can cash in on them living or dead... that is pretty messed up, but then what do you expect from jackals anyways :beard:

Hellboy
05-16-2004, 12:10 PM
If I'm working hourly I've always made a point to keep my own records for comparison. I caught a past employer shorting me hours numerous times but they always played it off like it was a mistake. Funny how that mistake never worked in my favor though. :rolleyes:

Kidhuman
05-16-2004, 12:40 PM
I can't post the link(it's on counterpuinch, a fairly political site), so PM me if you want it, but I just read an article that stated that WM secretly takes out life insurance policies on it's workers so that they can cash in on them living or dead... that is pretty messed up, but then what do you expect from jackals anyways :beard:

Its called Key Employee insurance. It is perfectly legal. It is used for upper magnagement type employees. It is to insure the company of loss of time to find, replace, and train a new person for that position. I used to sell it when I sold Life Insurance. As long as there is an interest in the person whom you are insuring and it can be proved, there is no law against it.