Minimum Wage Increase Mitigated with Biometric Time Clock
LONG ISLAND, N.Y., Jan. 5, 2018 /PRNewswire/ -- Workers in 18 states are ready to receive their first paycheck of 2018 that will come with a pay raise. Those states have passed laws mandating an increase to the minimum wage. Later in the year, three more states will enact increases to the minimum wage. In total, nearly 5 million workers will be affected.
While most people will agree that it is very difficult to live comfortably on minimum wage and that raising it is a matter of fairness, business owners will certainly feel the brunt of the new legislation.
Increasing the minimum wage by 70 cents, such as that now in effect for New York, is a 7% increase from the previous level of $9.70. The new $10.40 an hour rate translates to an increase of nearly $1,500 per employee per year. Costs to a small business owner can quickly add up; as a company with 25 employees will see payroll expenses increase by over $35,000 annually. States such as Maine and Colorado will see about a 10% increase in minimum wage requirements.
Business owners can help mitigate their increasing labor costs by implementing more accurate time tracking methods for their company. The best way to do this is with a biometric time clock system.
A biometric time clock is a device that identifies an employee based on their unique physical characteristics. An example of this can be a hand geometry scanner or a facial recognition scanner. Accurately identifying an employee when they clock in or out for work can eliminate a type of fraud called "time theft" or "buddy punching". This is when one employee punches in or out for another and can cost businesses tens of thousands of dollars a year in increased labor costs and lost productivity.
Independent studies show that a company currently using sign in sheets or paper based time cards can save an average of 7.2% on their gross annual payroll by utilizing a biometric time clock.
Will Horan, President of Biometric Time Clock Systems, a company that specializes in implementing these types of systems nationwide says, "With the current trend of annual increases to the minimum wage, a business owner needs to seriously consider a biometric time tracking system. It is the easiest and most cost-effective way to lower labor costs."
More information can be found on their website at www.BiometricTimeClock.com
SOURCE Biometric Time Clock Systems
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