Labor Noncompliance Rampant in Retail Market

Published on July 27, 2009 in Computer & Electronics, Computer Software, Internet, Technology


Eye-opening research to be revealed during July 28 webinar

CHELMSFORD , Mass. (July 27, 2009) –

According to a new study from AMR Research, retailers are at high risk of labor noncompliance, such as government labor regulations and collective bargaining agreements. The study found that more than 50 percent of retailers have been found noncompliant with federal, state, and union regulations in the last 12 months. A July 28 webinar hosted by Kronos® Incorporated will present quantitative data about compliance risks and explore how workforce management solutions can help minimize risk for retailers.
News Facts

* The AMR Research study also found that:
o 47 percent of retailers receive complaints from employees regarding time and attendance data
o The average fine for noncompliance lawsuits in the last 12 months was $250,000
o 82 percent of time and attendance data corrections are made by someone other than the employee
o Retailers report a 3.5 percent decrease in payroll costs as a result of implementing a workforce management solution
o Retailers report that 3.8 percent of sales are lost due to non-optimized labor scheduling
* Failing to comply with labor regulations can lead to serious financial consequences and other repercussions such as: noncompliance lawsuits with substantial payouts for back pay and fines, audits by the Department of Labor and other agencies, reputation damages, union grievances, and employee-relations problems that result in low morale and costly turnover.
* Using a Kronos time and attendance, scheduling, absence management, or hiring solution to automate workforce management processes can help reduce compliance headaches and minimize associated risks through centralized policy administration, local policy application, and detailed audit tracking.
* Kronos now offers a new Compliance Support Kit (CSK), which helps organizations more easily comply with state, local, union, and company policies, and protects retailers against grievances related to managers “shaving time”. A specific timecard attestation tool requires that employees approve their timecard if any edits have been made. By accessing real-time labor data including missed punches, breaks, and overtime status at the Kronos 4500(TM) data collection terminal or online using a web-based tool, managers can take corrective actions to resolve potential issues leading to noncompliance.
* The “AMR Research Study: Labor Compliance and Management” webinar will be held at 1:30 p.m. Eastern on Tuesday, July 28. Speakers include Janet Sherlock, research director of retail at AMR Research, as well as speakers from Payless ShoeSource. Register here: Compliance Webinar Registration.

Supporting Quotes

Janet Sherlock, research director, retail, AMR Research
“According to the study, the average noncompliance fine over the last 12 months was $250,000. Minimizing this risk alone can justify the purchase of an automated workforce management solution.”
Kara Barker, director, retail industry marketing, Kronos
“Retailers cannot afford to ignore labor compliance. We strongly encourage at-risk retailers to explore how achieving complete automation of workforce management processes can alleviate a myriad of compliance concerns.”

About Kronos Incorporated

Kronos is the global leader in workforce management solutions that enable organizations to control labor costs, minimize compliance risk, and improve workforce productivity. Tens of thousands of organizations in 60 countries — including more than half of the Fortune 1000® — use Kronos time and attendance, scheduling, absence management, HR and payroll, hiring, and labor analytics applications. To learn how Kronos uniquely delivers complete automation and high-quality information in an easy-to-use solution, visit

© 2009 Kronos Incorporated. Kronos is a registered trademark and Kronos 4500 is a trademark of Kronos Incorporated or a related company. All other trademarks are property of their respective owners.

Source: Kronos

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