Author: janareserva

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Workforce.com Recognized with Accolades from Capterra, Software Advice and GetApp in 2025

We’re proud to share that Workforce.com has been honored with multiple recognitions from Gartner Digital Markets brands—Capterra, Software Advice, and GetApp. Our product has been featured across several flagship reports released in 2025, reaffirming our commitment to delivering exceptional value to our users.

Check Out Our Latest Achievements
Strong user reviews on Capterra, Software Advice, and GetApp reflect the real-world impact of Workforce.com throughout the entire Human Capital Management (HCM) lifecycle. 

Our strategic HR and payroll tools like Applicant Tracking, Core Human Resources, and Employee Onboarding streamline hiring and improve the employee experience from day one. Meanwhile, our Workforce Management Suite, continues to lead the way with advanced capabilities like Employee Scheduling, Time & Attendance, and Labor Forecasting.

These accolades are a testament to the platform’s ability to drive real impact for frontline teams and back-office operations alike. Whether it’s streamlining the hiring process, improving employee experience, or ensuring shift coverage with precision, Workforce.com stands out for its ease of use, customer support, and tangible ROI.

What Users Are Saying About Workforce.com

“I had a great onboarding/setup experience. The software does exactly what my business needs and makes everyone convenient for employees. Scheduling is very easy and it uploads hours easily to ADP. The vacation tracking tool is very easy to manage and have employees request time off.”

[Source: Capterra]

“Workforce.com has made scheduling easier and convenient. Very easy to customize, so that I could filter it accordingly.”

[Source: Capterra]

“Workforce.com has been a key part of my daily workload, and it helps with the management of feedback and coaching sessions, also allows me to keep track of any time off request and schedule changes with a simple process”

[Source: Capterra]

Have you experienced Workforce.com? Click here to review us on Capterra.

Looking Ahead

This achievement marks another step forward in our journey, and we’re more committed than ever to evolving Workforce.com to better meet your needs. We’re excited for the future and look forward to continuing this journey with our users.

Learn more about why businesses trust Workforce.com. Book a demo today.

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What New Jersey’s Pay Transparency Law Means for Payroll

Summary

  • New Jersey’s Pay Transparency Act will be in effect by June 1, 2025.
  • Employees will be required to disclose pay ranges and benefits new hires can expect to receive within 12 months of employment..
  • Payroll software is crucial to ensuring that publicized salary ranges match what employees are being paid.

New Jersey joins a growing list of states that have implemented pay transparency laws, including New York, California, and Colorado. Starting June 1, 2025, the Pay Transparency Act will require covered employees to include pay information and benefits data in job postings, both for new roles and internal opportunities.

The act is designed to improve pay equity by making compensation more transparent to job seekers and employees alike. 

Who’s covered?

The law applies to employers who meet the following criteria: 

  • Have 10 or more employees over 20 calendar weeks 
  • Conduct business in New Jersey
  • Employ workers in New Jersey
  • Accepts applications for employment in New Jersey

What must be disclosed? 

Employers must disclose:

  • The hourly wage, salary, or pay range
  • A description of the benefits an employee can expect to receive in the first 12 months

These conditions apply to external job postings, internal promotions, and transfer opportunities. Employers must disclose any opportunities for promotion to all current staff in the affected department. However, promotions resulting from “unforeseen events” or based on years of service or performance are exempt from the notice requirement.

What happens if you don’t comply?

Employers who fail to comply can be subject to a penalty of $300 for first-time violations and up to $600 for subsequent violations.

What the new law means for payroll teams and how New Jersey businesses can adapt

Compliance with this new regulation has a lot to do with policy changes, and it’s easy to think that this is more of HR’s domain. However, once salary bands are made public, payroll teams must ensure that those numbers align with actual compensation data. 

Here are some practical tips to help payroll teams prepare:

Standardize pay rates across locations

If you’re hiring across state lines, you must ensure that each job post meets corresponding pay disclosure requirements in every state. 

Businesses operating in multiple locations often face challenges with standardizing job titles and pay rates. With Workforce.com, you can set pay rates for different roles or locations, which helps avoid any inconsistency between what’s posted on job listings and what’s paid.

Align job postings with actual pay data

To comply with laws like this, job postings must be audited against internal pay data. But this is easier said than done when compensation information is scattered across different spreadsheets or platforms. 

With Workforce.com, all your pay and role information lives in one system, making it easy to review, audit, and generate realistic pay ranges. 

For instance, instead of posting a vague range of $15-$25/hour, Workforce.com can help you determine the median pay rate for the role across locations, which will help you set a more realistic pay band.

In states that already have pay transparency laws, some businesses have received criticism for posting an overly broad range (e.g. $40,000-$120,000), which feels less like transparency and more like an attempt to skirt the law. If you’re serious about compliance and attracting the right people, realistic ranges matter. 

Audit job titles across roles

Payroll teams should look for pay disparities between employees with similar roles. If two people are doing the same work but receiving different pay, it’s important to understand why. 

Again, addressing these gaps is a matter of having the right data. Workforce.com houses employee records and pay rate history, which enables you to quickly identify inconsistencies among job titles and their pay. Managers can filter reports by job title and location to check whether employees with similar roles are paid within the same pay range.

Maintain clean payroll records

Keeping payroll records organized is a huge part of complying with different labor laws, including pay transparency requirements. Workforce.com keeps this information organized because it unifies time tracking, scheduling, and payroll. Ultimately, it creates a clean audit trail that connects job titles, hours worked, and pay rates. Having that information organized can help with compliance, especially if state regulators and employees ask for proof.

Invest in a good payroll system

Payroll is too complex to manage manually or with outdated tools. More than processing paychecks, a good payroll system centralizes your data such as pay rates, job roles, and other relevant information that can be crucial to compliance. 

Workforce.com was built to simplify this. It brings payroll and HR together, giving you a clearer view of your team and helping you stay compliant with new regulations.

Simplify compliance with Workforce.com

Pay transparency is both an HR and payroll challenge. With New Jersey’s law taking effect, it’s high time to ensure job postings align with what employees are actually paid. Workforce.com has the tools to help audit pay data, standardize pay rates across locations, and make payroll reports—all to help you stay compliant. 

See how Workforce.com makes payroll transparency easy for hourly teams. Book a demo today.

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Paycheck Pain: What Employers Need to Know About Student Loan Garnishment

The Trump administration is resuming wage garnishment for defaulted student loans starting May 5, 2025, with employers required to withhold up to 15% of employees’ disposable income. Small and mid-market businesses face significant administrative responsibilities including calculating garnishment amounts, processing deductions, and maintaining documentation, with estimated costs of 1-2 hours of staff time for initial setup and 15-30 minutes per affected employee each pay period.

Unlike most debt collection, federal student loan garnishment requires no court order, making implementation immediate once employers receive notice. Businesses that fail to comply face substantial liability risks, potentially becoming responsible for the employee’s entire debt plus penalties.

The policy affects roughly 5.3 million defaulted borrowers now, with nearly 4 million more at risk of default in coming months.

The Policy Evolution and Current Implementation

The concept of garnishing student loan payments directly from paychecks first emerged in February 2019, when then-Senator Lamar Alexander proposed it as part of reauthorizing the Higher Education Act. That original proposal called for a universal withholding system for all federal student loan borrowers, offering two options: an income-driven plan capping payments at 10% of discretionary income or a standard 10-year repayment plan.

While that proposal never became law, the current Trump administration announced in April 2025 that collection efforts on defaulted federal student loans would resume after a five-year pause that began during the COVID-19 pandemic. This implementation differs significantly from the 2019 proposal:

  • The current policy applies only to defaulted loans (typically 270+ days delinquent)
  • It follows administrative wage garnishment procedures established in the Debt Collection Improvement Act of 1996
  • Collections through the Treasury Offset Program began May 5, 2025
  • Wage garnishment notices will be sent to employers “later this summer”

The Department of Education maintains that resuming collections is not discretionary but required by the Higher Education Act. Education Secretary Linda McMahon stated that “American taxpayers will no longer be forced to serve as collateral for irresponsible student loan policies.”

Employer Responsibilities and Implementation Mechanics

When an employer receives a student loan wage garnishment order, they face several mandated responsibilities:

Immediate Responsibilities

  • Process garnishment orders as soon as received (no court order required)
  • Calculate the employee’s “disposable earnings” (gross pay minus legally required deductions like taxes)
  • Withhold up to 15% of disposable income
  • Notify affected employees about the garnishment
  • Begin withholding from the next available pay period
  • Send garnished funds to the agency specified in the order

Ongoing Requirements

  • Continue garnishment until receiving an official release or the debt is paid
  • Recalculate withholding if employee income changes
  • Maintain proper documentation of all garnishment activities
  • Ensure total garnishments don’t exceed legal limits (25% across all garnishments in most cases)
  • Manage priority order if multiple garnishments exist

The process differs from typical debt collection garnishments in critical ways. Most significantly, federal student loan garnishment is an administrative wage garnishment that doesn’t require judicial process. This means employers must implement these orders immediately upon receipt, with no court validation required.

Administrative Burden and Costs for Small/Mid-Market Businesses

Small and mid-market businesses bear disproportionate burdens from wage garnishment requirements due to limited administrative resources and less sophisticated payroll systems.

Time Requirements

The administrative work includes:

  • 1-2 hours of staff time for initial processing of each garnishment order
  • 15-30 minutes per affected employee each pay period for ongoing maintenance
  • Additional time for addressing employee questions and concerns

Small businesses face higher garnishment rates (13%) than large firms (8.7%), according to ADP Research Institute data, meaning they often handle more garnishments with fewer resources.

Financial Costs

While exact costs vary by business size and number of affected employees, expenses typically include:

  • Staff time costs (payroll/HR personnel diverting from core functions)
  • Potential investment in payroll system upgrades
  • Legal consultation expenses
  • Administrative fees (some states allow employers to charge employees $1-10 per payment)
  • Potential liability costs if garnishment orders aren’t processed correctly

For a small business with 25 employees and 3 garnishment orders, this could translate to approximately 6-8 hours of initial setup time plus 1-2 hours per pay period for ongoing maintenance—significant for operations with limited administrative staff.

Compliance Risks

The most severe cost comes from non-compliance. Employers who fail to properly implement garnishment orders can be held liable for the entire amount that should have been withheld, plus potential penalties and interest. For businesses processing multiple student loan garnishments, this represents substantial financial risk.

Timeline and Implementation Challenges

The current timeline creates several challenges for employers:

  • The Treasury Offset Program (seizing tax refunds, certain federal benefits) resumed May 5, 2025
  • Wage garnishment notices will be sent to employers “later this summer”
  • Approximately 5.3 million borrowers are currently in default, with nearly 4 million more at risk
  • Employers may face a sudden influx of garnishment orders with minimal preparation time

This compressed timeline coincides with other significant challenges:

  • The Department of Education is reducing staff by approximately 50%
  • Student loan management is transitioning from the Department of Education to the Small Business Administration
  • Many businesses face other economic pressures from inflation and tariffs

The administration has not announced any implementation assistance programs for affected employers despite the sudden resumption of collections.

Reasoning and Context for the Policy Shift

The Trump administration presents several justifications for resuming wage garnishment:

  • Fiscal responsibility: Officials argue taxpayers should not continue bearing costs of nonrepayment
  • Legal requirement: The administration maintains the Higher Education Act requires them to pursue collections
  • Normalizing operations: Officials frame this as returning to standard practice after an extended pandemic pause
  • Deterrent effect: Research suggests potential garnishment can motivate some borrowers to seek repayment options

Critics counter that the timing is problematic amid economic pressures, and that more effective alternatives exist, such as expanded income-driven repayment options.

Federal vs. Private Student Loan Treatment

The enforcement mechanisms differ significantly between federal and private student loans:

AspectFederal Student LoansPrivate Student Loans
Legal processAdministrative wage garnishment without court orderRequires lawsuit, judgment, and court order
Garnishment limitUp to 15% of disposable incomeUp to 25% of disposable income (varies by state)
Default timeline270 days of missed paymentsOften 90 days of missed payments
Notice requirement30-day notice before garnishmentVaries by state law
Additional collectionTax refund offsets, Social Security reductionLimited to wage garnishment and asset seizure
Protected incomeSome federal benefits partially protectedSocial Security and disability typically fully protected

For employers, the key difference is that federal loan garnishments arrive directly from the Department of Education with no court validation required, while private loan garnishments must first go through judicial process, potentially giving employers more time to prepare.

Precedents for Similar Wage Garnishment Systems

The current policy builds on established legal frameworks:

  • Higher Education Act of 1965 (Section 488A): Authorized garnishment up to 10% of disposable pay for defaulted student loans
  • Debt Collection Improvement Act of 1996: Expanded authority to 15% and standardized administrative wage garnishment procedures
  • Consumer Credit Protection Act: Provides general protections for all wage garnishment (maximum 25% total garnishment, employment protection)

The Department of Education has successfully implemented wage garnishment for student loans for over 20 years. Many of the debt collection mechanisms in current use were modeled after the Department’s existing practices.

Other similar systems include:

  • IRS wage levies for tax debts
  • Child support wage withholding
  • Bankruptcy-related wage earner plans

Expert Opinions on Feasibility and Impact

Experts offer varied perspectives on the policy’s implementation and effects:

On Feasibility

  • Mark Kantrowitz, higher education expert, questions the accelerated timeline: “It sounds like they are not pursuing the normal due diligence schedule for collecting defaulted federal student loans.” (CNBC)

On Economic Impact

  • Pew Research found 79% of borrowers who experienced wage garnishment reported it had a “major” financial impact, more severe than other consequences of default. (Pew Trust)
  • Federal Reserve projections suggest borrowers with delinquencies could see credit scores fall by up to 171 points, affecting their ability to secure housing and transportation. (CNBC)
  • Mike Pierce, executive director of the Student Borrower Protection Center, warns: “This will further fan the flames of economic chaos for working families across this country.” (Student Borrower Protection Center)

On Business Impact

  • Small business advocates note the disproportionate burden on smaller operations without dedicated compliance resources.
  • Scott Buchanan, executive director of the Student Loan Servicing Alliance, emphasizes proactive approaches: “Most borrowers…they’re not in danger of default today, but in five months, they could be. Taking action today is pretty important.” (NEPM)

Conclusion

The resumption of student loan wage garnishment represents a significant administrative challenge for employers, particularly small and mid-market businesses. While the legal framework for these garnishments is well-established, the sudden implementation after a five-year pause creates operational burdens with minimal preparation time. Small businesses face disproportionate impacts due to limited administrative resources, higher garnishment rates, and potential liability risks. For affected employers, developing clear internal processes, ensuring payroll systems can handle garnishment calculations, and documenting all actions will be crucial to navigating this policy shift without incurring significant costs or liability exposure.

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Simplifying Payroll for New Hires (and How Workforce.com Makes it Easy)

Summary

  • The first paycheck is crucial to employee engagement and can make or break employee onboarding for new hires.
  • Processing the first paycheck begins before a new employee’s first day at work, and much of it involves gathering the necessary information.
  • With the right payroll system, you can cut down time spent on approving timesheets and payroll processing by 95%.

Many things can make or break a new hire’s experience, and one of them is how they receive their first paycheck. Get it right, and you set the tone for a smooth, professional experience. Get it wrong, and you risk confusion, frustration, and a shaky start.

So, what’s the big deal with payroll? Isn’t it just a routine process? In theory, yes. But in practice, it’s anything but simple and can be time-consuming, especially for hourly teams. First runs are where small mistakes can snowball: missing information, misclassified roles, and incorrect tax setup.

Successful payroll starts long before day one. It’s about having the right systems in place, from collecting forms to tracking hours, so that everything flows naturally from onboarding to payday. 

That’s where Workforce.com can help. It connects onboarding, scheduling, timesheets, and payroll in a single system. It keeps everything in sync so you never have to chase information, avoid duplicate data entry, eliminate costly errors, and dodge any surprises come payday. 

It provides a simple workflow that makes payroll easy for payroll teams and stress-free for new hires. 

Let’s take a closer look at how it works:

Get crucial payroll information before the first day

Smooth payroll management starts with onboarding, which begins before your new hire even clocks in. 

While onboarding often focuses on culture, policies, and setting expectations, the administrative side is just as important, especially when it comes to payroll. This is where you gather key details such as tax documents, bank account info, and employee data and set job classifications and pay rates. If you go about this manually, you’re opening the door to delays, data entry mistakes, and miscalculations when processing payroll. Something as small as a missing form can derail a first paycheck.

Workforce.com makes onboarding fully digital. New hires enter their own employee information directly into the system. No double-entry or unnecessary paperwork. Tax forms, direct deposit details, and personal data all sync instantly with payroll.

If details are missing, managers are alerted and ensure that the required information is lodged before payday or even a new hire’s first day.

Pro tip: Start onboarding as soon as the offer’s signed, not the first day on the job. 

Also read: Creating a Better Onboarding Process for Hourly Staff

Download Free Template: Employee Onboarding Checklist

Set up pay rates and classifications in one place

Misclassification is a significant cause of payroll errors. For new hires, it’s essential that employers set this up correctly the first time.

With Workforce.com, everything lives in one place. You can assign pay rates, overtime rules, and employee classifications in a single system. You can also customize payroll data if needed, especially for more complicated work structures, such as employees taking up shifts at different sites or working two different roles with varying pay rates.

Need to make a change down the line? Update the info in one place, and it’s reflected instantly across schedules and payroll.

In addition, business owners get proactive tools that help catch issues before they become problems and minimize the administrative burden. Workforce.com shows how much each shift will cost as schedules are built, so there are no surprises during payroll processing. If an employee is about to be scheduled overtime, the system flags it immediately, giving you a chance to review it. It also alerts you if a rest break hasn’t been scheduled, helping you avoid compliance issues, additional payouts or violations.

Track accurate employee hours

Payroll mistakes often come from incorrect or incomplete timesheets. It can be tricky, especially if the employee joined in the middle of a pay period.

Workforce.com streamlines time tracking. Employees clock in and out through a mobile app (either on their phones or a device set up in the workplace), and their hours are instantly captured and fed into digital timesheets; no manual data entry is required. Both managers and employees can view and verify timesheets at any time, making it easy to catch and correct discrepancies early.

Also read: What is employee self-service? [Guide]

Missed a clock-in? The system alerts managers in real-time, so they can check in with staff and make quick corrections well before payroll is due. You’ll also get notifications for potential overtime or missed breaks, helping you stay compliant and avoid unplanned costs.

You’ll never have to ask, “Did we get their hours in correctly?” because you know you do. You can spot issues mid-cycle, not the eleventh hour, so payroll runs smoothly.

Automate deductions and tax withholdings with payroll software

Accurate payroll and clear pay breakdowns build trust from day one. But without the right system, deductions can be easily miscalculated, especially with an hourly team. 

Workforce.com’s payroll solution provides automation and takes the guesswork out of managing every type of deduction. Mandatory payroll taxes and withholdings, like federal, state, and local taxes, are automatically applied based on W-4 data collected during onboarding. Pre-tax and post-tax deductions are just as easy to configure. Employees receive automatically generated pay stubs with a clear breakdown of their gross pay, deductions, and take-home pay.

Also read: What are different payroll deductions? Taxes, benefits, and more

Download free template: Payroll Deduction Authorization Form

Pre-approve data and preview pay summaries

Payroll becomes stressful when pay information is inaccurate or when it’s verified too late in the process. Workforce.com helps you stay ahead by reviewing and approving data as it comes in. As shifts wrap up, you can instantly verify timesheets, check for missing logs, and receive alerts for anything that needs your attention so that nothing slips through the cracks. 

You’ll also get a clear, intuitive payroll preview that highlights exactly what’s ready to go and what still needs fixing. Because everything—scheduling, timesheets, pay rates, and deductions—lives in one system, resolving discrepancies is fast and straightforward. No switching between platforms. No chasing down spreadsheets.

Get payroll processing right from day one

The first paycheck isn’t just about getting paid. It’s a crucial moment in the new hire experience. It shows whether your business is organized or not. New employees notice and payroll is one of the clearest indicators of whether you’ve got your systems together. 

That’s why an all-in-one platform matters. Shipley Do-Nuts learned this firsthand when they switched to Workforce.com. Before, they were juggling four separate systems: one for onboarding, another for clock-ins, a third for scheduling, and a fourth for running payroll.

“Integrating all of those together has saved us so much time. It takes me about 95% less time than before, Shelly Archer, Human Resources Manager at Shipley Do-Nuts, shares. 

Want to see how Workforce.com works? Learn more about Shipley Do-Nuts’ success with Workforce.com, or book a demo today.


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California Minimum Wage by City and County: What Employers Need to Know

Summary

  • Payroll deductions can be more challenging to manage for hourly teams due to different factors such as variable schedules, different pay rates, higher turnover, and location-based compliance rules.
  • Handling payroll deductions for hourly teams goes beyond automation. It requires a system that can adapt to the complexities of hourly work. 
  • Workforce.com’s payroll software simplifies deduction tracking, ensuring accurate wage calculations and compliance on every pay run.

Effective January 1, 2025, the minimum wage in California is at $16.50 per hour. But that’s not the only thing you should know, especially if you have multiple business locations in the state. Many cities and counties in California have their own minimum wage laws, many with rates higher than the state’s. 

Whether you’re operating in one city or twenty, staying compliant means more than being adept at the law; it’s about having the systems in place to implement it.

The minimum wage landscape in California

California’s state minimum wage is currently $16.50, which is well above the federal minimum, with enforcement being overseen by the Department of Industrial Relations. The 2025 increase was deemed necessary because the consumer price index (CPI) grew by 3% over the previous year, as required by state law. 

California also enforces prevailing minimum wage laws specific to certain industries, such as fast food and healthcare.

  • Fast food employees – $20 per hour, effective April 1, 2024 for covered workers
  • Healthcare workers – $18-23 per hour effective October 16. 2024 for covered workers depending on the type of facility

Beyond statewide and industry-specific labor laws, business owners must also monitor local minimum wage rates. Some localities follow the state minimum wage, but other cities and counties impose their own, which is often higher than the state’s. Cost of living, economic conditions, and local policy goals are typically the factors that drive local regulations for setting unique minimum wage rates.

California minimum wage by city or county

Below is a breakdown of cities and counties in California that have their own, many of which have higher minimum wage rates than the state’s.

City/County2025 Minimum Wage
Alameda$17
Belmont$18.30
Berkeley$18.67
Burlingame$17.43
Cupertino$18.20
Daly City$17.07
East Palo Alto$17.45
El Cerrito$18.34
Emeryville$19.36
Foster City$17.39
Fremont$17.30
Half Moon Bay$17.30
Hayward$17.36

*$16.50 or state minimum wage for businesses with 25 or fewer employers
Los Altos$18.20
Los Angeles City$17.28
Los Angeles County (unincorporated)$17.27
Malibu$17.27
Menlo Park$17.27
Milpitas$17.70
Mountain View$19.20
Novato$17
Oakland$16.89
Palo Alto$18.20
Pasadena$17.50
Petaluma$17.97
Redwood City$18.20
Richmond$17.77
San Carlos$17.32
San Diego$17.25
San Francisco$18.67
San Jose$17.95
San Mateo$17.95
San Mateo County (unincorporated)$17.46
Santa Clara$17.27
Santa Rosa$17.87
Sonoma$18.02

$16.96 for employers with 25 or fewer employees
South San Francisco$17.70
Sunnyvale$19.00
West Hollywood

Local minimum wage variations by size

In some cities, local minimum wages include different rates based on employer size. For example, Hayward and Sonoma set lower minimum wage thresholds for small businesses with 25 or fewer employees. 

This adds yet another layer of complexity for business owners, especially when it comes to calculating pay accurately and staying compliant across multiple jurisdictions. 

Understanding unincorporated localities 

Another detail to watch out for is unincorporated areas. These regions are not part of an incorporated city but fall under the direct jurisdiction of the county government. 

Take Los Angeles County, for example. Cities like Los Angeles or Pasadena have their own local governments and wage laws. But places like Hacienda Heights and Walnut Park are unincorporated and are not part of the City of Los Angeles but within Los Angeles County. This means that the county’s minimum wage applies to them, not the city’s.

Challenges for California employers

Handling minimum wage in California presents unique challenges, especially for businesses operating in multiple areas. Here are some challenges business owners typically face and tips on what to watch out for:

Payroll complexities

Managing payroll is never simple, but it becomes more complex when you’re dealing with multiple locations, varying pay rates, and hourly employees working in various roles. Add to that the different local minimum wages across cities and counties. It could be easy to overlook details, such as mistakenly paying an employee in an unincorporated area the city minimum wage rather than the county wage.

Inconsistent labor costs

Multiple minimum wages in California, along with industry-specific wage laws, overtime and meal/rest break laws, and other labor ordinances, can lead to inconsistent labor costs for businesses in the state. This presents a significant challenge to organizations wanting to keep their labor costs leveled and consistent as much as possible. 

Wage compression issues 

Wage compression occurs when the pay gap between entry-level employees and more experienced workers narrows. This often happens when minimum wage increases outpace raises for more seasoned staff, making the difference between the two smaller. 

To further illustrate, here’s an example. Let’s say your business in Los Angeles used to pay entry-level workers $16 and shift supervisors $18. And now, the minimum wage is at $17.28 per hour. Naturally, entry-level pay should follow this new rate to comply with the law. However, your shift supervisors will end up just earning $0.72 more, which may not be reflective of their responsibilities and roles. 

This can result in a drop in morale, and experienced employees may feel undervalued. Raises may also become reactive rather than strategic, creating a ripple effect in your payroll structure.

Best practices for complying with California’s minimum wage laws

California has one of the most complex labor landscapes in the country, including local minimum wage rates and rules. So, how do employers stay on top of compliance?

Automate HR and payroll

Even the most experienced payroll and HR professionals can make mistakes, especially when handling multiple wage rates across cities, industries, and employee roles. That’s why using software to automate processes is vital.

However, not all payroll systems are built the same. If you’re managing something as nuanced as California minimum wage laws, you need a robust and centralized system. This is where Workforce.com comes in, and these are the ways it helps California businesses stay compliant and efficient:

  • Wage and hour automation: Multiple pay rates and minimum wages are the least of your concerns with Workforce.com. The platform automatically applies the minimum wage according to role and location, including cases where employees work multiple roles across different cities. It also accurately calculates overtime.
  • Employee classifications: Another cause of payroll mistakes is misclassifying employees, and that’s one thing that Workforce.com eliminates for employers because all data and information live in one place. This includes employee details, such as their employment status, corresponding pay rates, and bank information. If any employee information gets changed down the line, it’s reflected instantly across schedules and payroll. No need for manual re-entry.
  • Accurate time and attendance tracking: Inaccurate employee time logs can lead to payroll mistakes.. Workforce.com turns employee clock-in and clock-out into timesheets, which managers can easily verify and check.
  • Labor forecasting: California’s ever-changing labor rules can cause inconsistent labor costs. Workforce.com helps stabilize costs by forecasting demand based on relevant factors such as historical sales, upcoming events, booked appointments, foot traffic, and even weather.

    When creating schedules, managers can easily see how much each shift would cost and receive alerts if they schedule someone for overtime or forget to schedule break times. This will help avoid unnecessary labor costs or potential fines for non-compliance. 
  • Real-time alerts: Managers get live updates when employees fail to clock in or out for a shift or break time. They will also get alerts when employees are about to breach overtime, especially if they’re not scheduled for it. This allows teams to fix small issues before they turn into bigger problems.

Conduct regular wage audits

Conducting wage audits in the state of California is essential because it helps employers stay on top of local rate changes. While most cities raise their minimum wages annually, note that they can do so on different schedules. 

Regular wage audits ensure your pay structure reflects the latest local rates. They also help you catch wage compression issues early, keeping your compensation strategy fair and employee morale intact. In case you face a labor board inquiry or employee complaint, having audit records on hand gives you the evidence you need to respond quickly.

Train your managers

Automation is powerful, but it also pays to equip your managers with the right information and training on handling complicated labor rules. 

Regularly train your management team on California’s local wage laws. These rules can change frequently, so ongoing refreshers are vital. Managers should also have tools and resources to help them explain wage-related issues and faqs to employees and recognize compliance gaps in workflows or systems.

California’s minimum wage rules can change quickly. Stay ahead by automating wage rates and catching compliance issues before payroll with Workforce.com. See the platform in action and book a demo today. 

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Why Payroll Deductions are Harder Than They Look (Especially for Hourly Teams)

Summary

  • Payroll deductions can be more challenging to manage for hourly teams due to different factors such as variable schedules, different pay rates, higher turnover, and location-based compliance rules.
  • Handling payroll deductions for hourly teams goes beyond automation. It requires a system that can adapt to the complexities of hourly work. 
  • Workforce.com’s payroll software simplifies deduction tracking, ensuring accurate wage calculations and compliance on every pay run.

Payroll deduction may seem like a basic, straightforward task: calculate gross wages, withhold required amounts, and issue the paycheck. But for hourly workers, this can get complicated fast.

Hourly teams often have variable schedules, which means inconsistent hours and irregular pay. Plus, turnover tends to be higher for this type of worker, so business owners often onboard and offboard staff, which can also be an area of risk. When you add that to wage garnishment orders and state-based rules, it can quickly result in compliance issues, frustrated employees, and fines. 

Let’s take a look at why deductions are trickier for hourly workforces—and what employers can do to avoid common pitfalls.

Why payroll deductions are more complicated for hourly employees

If your business relies on hourly workers, here are several factors that make payroll deductions more challenging:

Variable schedules 

Hourly workers don’t have fixed salaries and hours, and therefore, their gross pay can swing dramatically from week to week. This creates challenges for applying deductions, especially when they’re fixed amounts like insurance premiums or wage garnishments. 

Here’s an example: In a biweekly pay period, an employee works 25 hours total at $15 hourly wage, earning just $375 gross. While FICA taxes are percentage-based (7.65% of gross pay), if this employee also has a court-ordered garnishment of $75 or voluntary deductions like health insurance premiums at $100, their remaining net pay might fall below minimum wage thresholds after all deductions are applied. In this case, employers would need to reduce, prorate, or defer some deductions. 

Note that aside from pay deductions, you also need to watch out for any predictive scheduling laws that may apply to you. Under Fair Workweek laws, you are mandated to create more predictable schedules for employees.

Also read: Predictive Scheduling Laws Explained: A Guide for Employers

Multi-location operations

Each state, city, or county, may have its own rules for income tax withholding, minimum wage, and even pay frequency. And if you’re operating in multiple cities and states, it can lead to challenges with compliance and applying correct deductions. 

For instance, a worker in California is subject to state income tax and State Disability Insurance (SDI) deductions, while an employee in Texas isn’t. If your system doesn’t account for location specific rules, you can easily over- or under-withheld taxes from employees, leading to compliance issues. 

And it becomes even more trickier especially when you have employees working in multiple jurisdictions at a time. So for instance, you have neighboring stores in Emeryville and Oakland in California, and you have a worker who worked in both locations in one pay cycle. You need to properly calculate their wages not just on the number of hours, but also on where those hours are worked. Make sure your system supports different hourly rates, especially when employees work across roles or locations.

High turnover rates

Turnover rates are typically higher for industries that employ hourly teams, which can introduce several challenges for payroll and deductions. Because onboarding and offboarding are more frequent, employers may forget to prorate certain deductions, miscalculate withholdings for departing employees, misclassify employee status, and increase the administrative burden on payroll teams when processing these deductions.

Best practices for payroll processing and deductions

Automate payroll, but…

Not all payroll systems are built for hourly teams. You need one that accounts for the nuances of hourly operations. 

Like many things in HR, payroll deductions are not a set-it-and-forget-it kind of thing. They can change depending on several factors, and you need a system that can automate even the way you deal with different nuances that affect payroll computations and deductions.Here’s what to look for in a payroll service provider or software:

  • Centralized system – Keep everything connected, from onboarding, to scheduling, to payroll. Much of payroll happens way before you process time and attendance. It begins as early as employee onboarding. For instance, collecting a new hire’s Form W-4 is essential, as it determines how much federal income tax to withhold from their pay. If this form is missing or outdated, it can throw off your deductions and lead to compliance issues.

    A system that keeps information in sync across time and attendance, payroll, and employee scheduling ensures accurate pay calculations and correct employee classifications without switching between modules and multiple data entries.
  • Labor compliance engine – Your system should automatically apply federal, state, and local labor rules to stay compliant every pay run.
  • Time and attendance integration. Manual timesheets slow down payroll processing and increase the risk of inaccurate computations, including deductions. Avoid manual errors. Use digital time tracking to feed clean data directly into payroll. A system that simplifies tracking employee time, supports varying hourly rates, and generates timesheets is the way to go.
  • Secure recordkeeping. Documentation is vital for payroll. The Department of Labor and IRS have retention requirements that organizations must adhere to. Payroll records must be stored and accessible for audits or employee requests without digging through spreadsheets.

Payroll calculations and deductions would be significantly more straightforward when you have the right system. Workforce.com handles all of this automatically. From employee classifications, pay rate calculations, and deduction rules to recordkeeping requirements, it ensures everything’s accounted for and compliant.

Know the deductions you’re working with

Even with a solid payroll system, your managers still need a working knowledge of wage rules and deduction types. This helps ensure everything runs as it should and gives your team the confidence to spot errors or answer employee questions on the fly. 

Payroll deductions fall into two main categories—mandatory and voluntary. Here’s a quick overview of what your team should be familiar with. 

Mandatory deductions

As the name suggests, these are amounts that employees must pay, and employers must deduct from their staff’s wages. Statutory deductions take up a considerable portion of mandatory deductions, and these are amounts to meet tax obligations and fund essential public services like Social Security, Medicare and state programs. Here’s a list of statutory deductions that are mandated by law: 

  • FICA (Federal Insurance Contributions Act) – for Social Security and Medicare tax
  • Federal income tax
  • State and local taxes

Wage garnishment is another form of mandatory deductions. It is based on a court order mandating employers to withhold a portion of an employee’s pay for financial obligations or debts, such as child support, student loan payments, tax debts, and personal debts. 

Voluntary deductions

Voluntary deductions are optional and can enhance employee benefits. Retirement plan contributions, health insurance benefits, union dues, and charitable donations are examples of voluntary deductions. Before employers can withhold amounts under this category from an employee’s paycheck, they must secure written authorization. 

It’s also important to distinguish between pre-tax and post-tax deductions. Common examples of pre-tax deductions include HSA contributions, health insurance premiums, and 401(k) contributions. Pre-tax deductions can also lower an employer’s liability for the Federal Unemployment Tax Act (FUTA), which funds unemployment benefits for workers who have lost their jobs.

Meanwhile, Roth IRA contributions or union dues, are taken out after taxes have been applied. Understanding the order and type of deduction is key to accurate payroll and compliance.

For a more in-depth look at the different types of payroll deductions and how they are calculated, read this guide.

Having a good grasp of how payroll deductions work will also help you manage unusual and tricky scenarios better, such as:

  • What happens when an employee works a shift in a different city? How does that affect taxes or local withholding? 
  • What if a new garnishment order comes halfway through a pay cycle? 
  • What if a deduction pushes net pay below the minimum wage threshold? 

An automated system can handle these situations, but it’s just as important for managers to understand the “why” behind the numbers. That way, they can explain deductions to staff clearly, catch potential system errors, and ensure nothing slips through the cracks.

Download: Free Payroll Deduction Authorization Form

Watch for changes that affect deductions

Did an employee receive a raise? Change their benefits? Update their tax withholding? Went from part-time to full-time?

Any change to salary, benefits, or classification should prompt a quick audit to ensure payroll deductions stay accurate. But don’t forget about tax forms, either. If an employee submits a new W-4 form to update their filing status or withholding preferences, it should be reflected in your payroll system immediately.

Failing to update these changes can lead to incorrect deductions, under- or over-withholding, or even compliance issues. A centralized system that syncs employee data across payroll, time tracking, and HR makes it easier to catch and act on these updates before they cause problems.

Keep pay stubs clear and accessibleEmployees should always be able to see how their pay is calculated, from gross income to deductions to final take-home pay. Clear, transparent pay stubs build trust and cut down on confusion. Your payroll system should generate and distribute them automatically, without extra admin work. It would be even better if employees could access their pay stubs anytime, from any device, without needing to chase down HR for answers.

The smarter way to manage payroll deductions

Payroll deductions are never as simple as they look, especially for hourly teams. But with the right system and tools, they can be one less thing to worry about every pay run. 

The key here is to automate and use tools that will allow you to calculate gross wages, factor in deductions, account for unique situations and nuances, and stay compliant at every step. That’s where Workforce.com can help you. 

Workforce.com is built for hourly operations. It calculates gross wages, applies accurate deductions, handles different pay rates, accounts for federal and state rules, and keeps records audit-ready. From onboarding, tracking work hours, assigning shifts, managing PTOs, and running payroll, the system keeps everything connected and compliant. 

From onboarding, employee classifications, assigning shifts, tracking work hours, managing PTOs, handling different pay rates, and complying with state and federal rules to calculating payroll, the system can automate it, save you time, and significantly reduce the risk of errors.  

Ready to simplify your payroll? Book a demo to see how Workforce.com helps hourly teams stay on top of payroll, HR, and workforce management.

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5 Tips to Simplify Overtime Calculations

Summary

  • Challenges with overtime calculations don’t just come with the math. It’s all the manual processes involved, especially with different pay conditions and compliance rules.
  • Overtime calculations can be simplified. In fact, an LA-based organization reduced time processing timesheets by 92%.
  • Payroll software can significantly reduce errors and time spent on calculating overtime.

Overtime pay calculations can feel like a full-time job, even if it’s just one of the many things that go into payroll. Different pay rates, tracking total number of hours, changing schedules, and compliance rules make it tricky, especially when you’re running an hourly team on multiple shifts. When you dig deeper into it, however, the real problem isn’t the math. It’s the manual work. 

So, how can you simplify the process, reduce errors, and ensure that employees are paid on time? Here are five practical ways to do so.

1. Improve your onboarding process

Onboarding is not just about welcoming new hires. It’s about setting up systems that make payroll, including overtime, easier to manage.

When we think of onboarding, we usually focus on getting new hires up to speed and integrated into the team. But the behind-the-scenes admin work during this stage plays a massive role in how seamless (or messy) payroll and overtime processing will be down the line.

Proper onboarding ensures accurate classification from day one. If you misclassify employees (exempt vs. non-exempt), you can face overtime compliance issues later on. This is also the perfect time to set clear expectations around overtime—when it kicks in, what overtime premium rates apply, straight time pay policies, and other relevant conditions.

Onboarding is also the time to get new hires up and running on your time-tracking system. 

Show them how to clock in and out correctly and how time logs are generated into timesheets. Getting new hires set up in your time-tracking system early prevents payroll errors later.Onboarding on its own can feel like too much admin and paperwork. Workforce.com has an automated system for getting new hires onto your system. New hires get a link to the onboarding platform and input their information, minimizing errors and admin work for your team. You can also upload contracts, handbooks, and other key documents, plus create employee profiles with base pay and classifications.

2. Automate time and attendance tracking

Employee work hours are at the core of processing payroll and calculating overtime pay. Manually processing timesheets and payroll is not only time-consuming but also increases the risk of payroll errors, underpayments, and compliance issues. 

An automated time and attendance system ensures all hours of work are recorded accurately, so you don’t have to second-guess overtime calculations. Workforce.com captures time logs through a tablet placed on your job site or directly from an employee’s mobile phone. The system logs location data, which is essential if you manage teams in different locations. 

Clock ins and outs are generated into timesheets, indicating the total number of hours. Overtime hours are flagged, and managers can quickly review and approve in seconds and fix any discrepancies before payroll processing. 

For Lisa Hanna, business manager at Ethos Orthodontics, payroll used to be a three-day ordeal. “Generally, I’d spend a few hours each Sunday printing out and processing timesheets to get them ready for payroll that week,” she shared.

With Workforce.com, Hanna got her Sundays back as the system prepared the timesheets for her. It now only takes a few clicks to approve and export timesheets for payroll, reducing the admin load and compliance risks.

3. Set overtime alerts

Overtime is sometimes necessary, but it shouldn’t be eating into your budget unless it absolutely needs to. 

Workforce.com keeps overtime under control with real-time visibility. When scheduling, managers get an alert when an employee is scheduled for more than their regular hours. If it’s intentional, great—no surprises on payday. But if it’s an accident? You can fix it before it turns into an unnecessary payroll expense.

The system also flags when employee hours are about to hit overtime. If someone’s shift is over but they’re still clocked in, managers get notified. At that point, they can check in: Did the employee forget to clock out? Are they actually working? If so, is overtime work truly needed, or can the task wait until the next shift?

These real-time alerts prevent unplanned overtime, keep labor costs in check, and even promote better work-life balance for your team.

4. Use payroll software

Payroll software can simplify overtime calculations, but only if it’s built to handle the complexities of your workforce. 

Consider your payroll needs and go for the solution that meets your requirements. Whether you’re looking for software or planning to switch to a different system, consider the following: 

  • Overtime and labor laws – Can it keep up with changing labor laws? Does it account for both federal and state overtime rules? Can it automatically update tax rates?
  • Integration and data entry – Does it sync well with time tracking and HR? Can data flow smoothly from one module to the next, or will you be stuck with manual entry?
  • Customization – Aside from employee’s regular rate, can it handle shift differentials, different rates, fluctuating workweeks, non-discretionary bonuses, weighted average calculations, and other conditions and exemptions?
  • Ease of use and implementation – How long does it take to roll out? Can employees actually use it without a steep learning curve? Even the most advanced features are useless if your team avoids the system. 

Mikhuna, an LA-based food truck business, teamed up with Workforce.com to simplify payroll processing, time and attendance tracking, and employee scheduling. Because everything is now done on a single platform, they saw a 92% decrease in time spent correcting timesheets and saved three hours on payroll processing.

“It used to take me between two to three hours to run payroll,” Cynthia Carreiro, Mikhuna’s CFO, shared. “Now it takes no more than 3 minutes.” 

Beyond saving time, Mikhuna also gained real-time visibility into labor costs. “A year from now, I’ll be able to look back at a pay run from the same time last year and see if I’m losing or making money,” Carreiro adds.

When payroll software is built right, it doesn’t just save time. It gives you the insights you need to make smarter business decisions.

5. Understand overtime rules that apply to your workforce

Even with the best payroll software, your managers and HR team still need a firm grasp of how overtime rules work not only for processing payroll but also for answering employee faqs. 

At the very least, managers should know existing federal laws and state rules around overtime. Under the Fair Labor Standards Act (FLSA) rules, nonexempt employees must receive overtime pay for hours worked in excess of 40 in a workweek at one and a half times their regular rate of pay. But here’s the kicker—what actually makes an employee exempt or nonexempt? The Department of Labor set the guidelines on what makes an employee exempt or non-exempt to overtime pay. While hourly employees are typically non-exempt, salaried employees may also be entitled to overtime if they meet the criteria on salary levels and job duties.

What about regular rate of pay calculations? What goes into in exactly? Aside from regular hourly rate, salaries (for salaried, nonexempt employees), nondiscretionary bonuses, shift differentials, piece-rate pay, and commission must be included in the computation.

Leadership teams should be able to provide a clear, high-level explanation on these areas, especially when they concern employees’ total compensation.

Also read: Exempt vs. non-exempt employees: knowing the difference

If you operate in a state with stricter overtime laws, that’s another layer of compliance to manage. Take California, for example. Daily overtime is recognized in California, which means that workers are entitled to overtime payments when they work more than 8 hours in a single workday or over 40 hours in a single workweek. This is different from FLSA rules, which calculate total overtime based on hours worked in a 40-hour workweek rather than a single workday

The overtime pay rate also varies in California. Employers must pay one and a half times the regular rate of pay after 8 hours a day. But double time or twice the regular rate of pay takes effect for employees who work after 12 hours a day or after 8 hours on the seventh consecutive workday.

Also read: California Overtime Laws Explained: What Employers Need to Know

Payroll software can handle the calculations for you according to applicable federal and state laws. However, your team still needs to understand the rules, both to ensure your systems are running correctly and to confidently handle employee questions.

Stop Working Overtime to Calculate Overtime

Calculating overtime wages shouldn’t steal your weekends or keep you at the office late. With the right system, you can automate not just the math but also streamline its administrative side.

Workforce.com automatically calculates overtime, no matter how complex your pay setup is. Whether you have shift differentials, double time, fluctuating workweeks, or non-discretionary bonuses, the system handles it all.

It also keeps up with labor laws to ensure compliance at every step. Need to update an employee’s pay rate or adjust your overtime policy? Just enter it once, and the system updates everything—from time tracking to payroll—without extra work on your end.

Overtime shouldn’t be an admin nightmare. See how Workforce.com makes it simple for businesses worldwide. Check out our customer stories or book a demo today. 

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Paid Sick Leave in Missouri: What Employers Need to Know as Repeal Efforts Loom

Summary

  • Paid sick leave in Missouri will take effect on May 1, 2025. However, some groups and state lawmakers are currently opposing it.
  • Under the law, employees can accrue an hour of paid sick leave for every 30 hours worked.
  • More than a compliance plan, employers need an all-in-one system that adapts as the law evolves.

Paid sick leave in Missouri is set to take effect on May 1, 2025. Proposition A, approved by Missouri voters in November 2024, introduces significant changes to the state’s labor laws, including mandatory paid sick leave for many workers. 

Under the new law, employees will accrue one hour of paid sick leave for every 30 hours worked. Businesses with fewer than 15 employees must offer up to 40 hours of paid sick leave per year, while larger employers must provide up to 56 hours annually. Exceptions apply to certain workers, like government employees and businesses making less than $500,000 in annual revenue. 

In addition to paid sick leave, Proposition A also increases the minimum wage to $15 by January 1, 2026.

Efforts to repeal Proposition A

Proposition A faces pushback from business advocacy groups and state lawmakers who argue the law is flawed and burdensome for employers. 

The Missouri Chamber of Commerce and Industry, the Missouri Grocers Association, the Missouri Restaurant Association, the National Federation of Independent Businesses, and three individuals linked to these organizations have filed a lawsuit challenging Proposition A with the Missouri Supreme Court. 

The plaintiffs claim the ballot summary and fiscal note were misleading and argue that Proposition A violates the state constitution’s single subject rule by combining minimum wage and sick leave provisions into one measure. 

Lawmakers are also moving to repeal Proposition A. House Bill 567 pushes to overturn paid sick leave rules and remove inflation-based minimum wage adjustments. The bill has passed the Missouri House and is currently being considered by the Senate. However, it doesn’t have an emergency clause, which means that even if it’s enacted, it would not become effective until August 28, 2025.

Tips for managing Missouri’s paid sick leave law

Missouri’s new paid sick leave law isn’t just a challenge for policymakers. It also puts employers in a tough spot. Businesses must balance compliance with labor laws while staying agile in case of legal or legislative changes. Here’s how employers can stay ahead. 

Focus on the facts and prepare accordingly

Proposition A will take effect on May 1, 2025. Therefore, employers should be ready to implement paid sick leave policies by that date. 

  • Notify employees in writing about the earned paid sick time policy by April 15, 2025, as mandated by the law. 
  • Ensure payroll and scheduling systems are updated to track sick leave accrual and usage. 
  • Train managers on policy changes to avoid confusion and ensure employee questions can be addressed.

Monitor any legal developments 

Labor laws are constantly changing, and Proposition A remains a pressing issue in Missouri courts and legislature. Rules can change at any time, and employers must always be updated about developments.

Check the Missouri Department of Labor for official updates and guidance, monitor senate discussions, and review bill statutes and amendments to stay on top of changes that could impact compliance.

Be prepared to adjust

Missouri’s paid sick leave laws can change at any time. With lawsuits and legislative challenges underway, they could be amended, repealed, or upheld. A flexible system allows employers to adjust quickly, regardless of the outcome. 

Workforce.com helps organizations stay compliant and adapt to potential changes by:  

  • Automatically tracking sick leave accrual based on hours worked. 
  • Providing employees real-time access to their leave balances via a mobile app. 
  • Calculating accurate sick leave payouts and preventing payroll errors.
  • Employees can check their leave balances anytime through the employee mobile app. 
  • Offering real-time visibility into who’s out sick, helping managers fill vacant shifts with available and qualified staff. 
  • Enabling HR teams to instantly adjust policies and ensure staff have easy access to updated rules. 

Missouri businesses need more than just a plan. They need a system that adapts as Proposition A evolves. A flexible, all-in-one system for time and attendance, employee scheduling, HR, and payroll is vital to keeping up. Workforce.com simplifies compliance and helps you adapt to legislative changes with ease. Book a call to learn how. 

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The Total Economic Impact™ of Workforce.com

Forrester conducted a study to discover the cost savings and business benefits of Workforce.com. Results of the study show that a composite organization in the food and retail sector has seen labor savings, achieved efficiency gains for managers, and reduced compliance risk. 

Key Findings

A 450% ROI 

According to the study, Workforce.com has a 450% return on investment (ROI) and the following three-year, risk-adjusted present value (PV) qualified benefits. Some highlights include: 

Improved labor efficiency by 5% and Increased revenue per labor hour by 5.26% 

One of the organizations interviewed for the study shared that they improved labor efficiency by 11% just by focusing on optimizing labor hours per store. Over three years, the composite organization saved $5.3 in labor costs. 

Workforce.com makes it easier for managers to forecast demand and create optimized schedules based on past sales data, shift trends, hourly rates, and staff qualifications.

“It was easy to justify this investment because labor is one of the biggest costs to our business, so it’s not only critical, it’s just smart to have a system that gives us oversight and is designed to manage labor costs.” Country Manager, QSR

80% Less Time Spent on Scheduling

Managers are also saving 4.2 hours per week per store on scheduling and other related tasks, leading to $1.6 million in labor savings over three years.

By automating scheduling, Workforce.com reduces the time spent creating shifts, forecasting demand, and handling admin tasks like shift swaps, onboarding, and compliance tracking.

“Now we don’t need to rely on muscle memory and gut feelings. We only need to use the system to see the forecast to make sure that the efficiency assumptions are in place. That’s it. Everyone can make a schedule.” Vice President of Customers, QSR

$920K in Compliance Risk Reduction

Workforce.com’s compliance engine helps businesses stay on top of labor laws and ensures accurate pay, potentially avoiding $920,000 in fines, penalties, and legal costs.

$991K in Payroll and Accounting Savings

With more accurate timesheets, automated workflows, and better visibility, payroll and accounting teams spend less time on manual work and compliance checks—leading to nearly $1 million in savings.

Key challenges identified among organizations

Forrester’s study highlighted common challenges that pushed decision-makers to seek a more efficient workforce management platform. Here’s what they struggled with before making the switch: 

  • Keeping up with labor laws and agreements – With labor regulations constantly changing, businesses needed better oversight of payroll practices and compliance.
  • Lack of visibility across stores and managers – Without a centralized system, companies had little insight into store operations, making it harder to ensure compliance, track performance, and identify training needs.
  • Rising labor costs – Companies needed a smarter way to control labor expenses and optimize costs.

“We use Workforce.com because the most critical part of creating a schedule is projecting in detail what you think is going to happen every day, then using that information to tell us when people need to start. Labor in this country is very expensive, so 15 wasted minutes adds up to a lot of money.” Country Manager, QSR Organization

  • Shifting customer demands – Businesses needed a scheduling platform that could handle fluctuating demand across multiple channels. The COVID-19 pandemic made this even more urgent, forcing companies to adapt to changing customer behaviors, including balancing in-store and delivery operations.

Background

Forrester conducted this study on behalf of Workforce.com to evaluate its return on investment (ROI). Researchers interviewed decision-makers from organizations that had implemented Workforce.com. Their insights were combined into a single composite organization—a global food and retail company with 250 store locations, 5,300 employees (including one manager per store), and $312 million in annual revenue.

Before switching to Workforce.com, these businesses relied on a mix of legacy systems and platforms. However, many managers still fell back on manual processes for scheduling, managing shift swaps, and onboarding new hires. As a result, they struggled with:

  • Forecasting staffing needs
  • Controlling labor costs
  • Managing schedules efficiently
  • Staying compliant with labor laws and payroll regulations

Want to see the full breakdown of Forrester’s findings? Download the report here.

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HRIS 101: A Guide for Small Businesses

Summary

  • It’s typical for small businesses to consider using HRIS to help manage their employees, but choosing an HRIS software takes an average of 15 weeks.
  • HRIS, HRMS, and HCM are all HR-related systems that are similar but are distinct in their focus. Small businesses must know the difference between these systems to make a sound decision.
  • Workforce.com helps small businesses beyond their HRIS requirements, offering an all-in-one solution for managing HR processes from onboarding, tracking time and attendance, payroll, performance management, and labor analytics.

Running a small business is challenging enough without getting bogged down by HR paperwork and tedious admin tasks. As your team grows, managing payroll, employee records, and compliance can quickly become overwhelming and eat into valuable time. There’s also an increased risk of errors, which could lead to compliance issues. Enter HRIS—Human Resources Information System. 

HRIS is a tool for taking the grind out of HR. It centralizes employee records, automates payroll, and ensures compliance with labor laws. It helps small businesses tackle the administrative side of human resources, which gives them back precious hours for employers to focus on growing their business. 

In this guide, we’ll break down exactly what an HRIS is and what to look for when choosing the perfect system for your team.

What is HRIS?

These days, HRISs come in all shapes and sizes, each with its own set of features and complexity. But at the heart of it, they all help with core HR tasks such as time tracking, payroll, benefits management, and workflow creation. Plus, they store all critical employee information, from personal details to compensation data. In the past, HRIS was usually run on a company’s servers, but now cloud-based platforms are the go-to. And for good reason—they’re much more efficient, letting you access anytime, from virtually any device.

Why is an HRIS platform important for small businesses?

Because it saves time, which means small business owners can work smarter, not harder. 

Running a small business is all about staying focused on what keeps the wheels turning and being ready to seize opportunities when they come. That’s how small businesses grow. But when you’re stuck with admin tasks, it’s easy to lose sight of the bigger picture and miss out on opportunities to move your business forward. 

This is where HRIS can be helpful. It can simplify and automate time-consuming HR tasks, and with the right system, you can take your hands off things like:

  • Managing employee profiles
  • Storing crucial employee data for classification, compliance, and payroll
  • Monitoring PTOs and leave balances
  • Viewing and approving timesheets
  • Processing payroll and sending out pay stubs
  • Letting employees view and update their own information

Imagine all those processes running smoothly in the background. The time you’d save could be redirected to strategic planning and business growth.

HRIS vs. HRMS vs. HCM

If you’re exploring HR software, you’ve likely come across HRIS, HRMS (Human Resource Management System), and HCM (Human Capital Management). But what’s the difference? 

While they are often mixed up, and there are overlaps in their functions, they have distinct focuses. 

HRIS focuses on core administrative HR tasks, such as managing employee data, processing payroll, tracking time and attendance, and ensuring compliance with regulations. Its primary purpose is to centralize and automate HR processes, reducing paperwork and manual effort. HRIS streamlines day-to-day operations and handles basic HR functions.

HRMS includes all the functionalities of an HRIS but goes a step further by adding talent management tools, which includes tools that help with performance reviews. This means it not only manages employee records and payroll but also supports the recruitment process, helps with onboarding new hires, and tracks employee performance and development. In other words, HRMS brings a more strategic HR approach and goes beyond the administrative aspects.

HCM encompasses both HRIS and HRMS functions but expands to cover the entire employee lifecycle. It’s not just about managing data and processes—it’s about optimizing the workforce as a critical business asset. HCM systems help with workforce planning, succession planning, compensation analysis, and labor compliance with local and international labor laws. They also have tools to improve employee engagement and satisfaction. This makes HCM ideal for rapidly scaling businesses looking to align HR functions with broader business goals.  

Also read: 11 HR Basics for Small Businesses

How to choose the best HR system for a small business? 

Selecting an HRIS can take 15 weeks on average, according to a study. But if you’re looking to streamline your HR now, that can be a long time. Since every business has different needs, there’s no one-size-fits-all software solution. To speed up the decision-making process, here are some key factors to focus on to help you find the best fit:

HR needs

Start by identifying what you need from HRIS, or any HR platform for that matter. Figure out your pain points. What’s slowing you down? Are you buried in paperwork or struggling with employee data management? In that case, a basic HRIS can do the trick. Need help with more strategic tasks with succession planning? Then, an HCM system might be a better fit. 

Go deeper. Take a look at the types of employees you hire. Is your team composed of more hourly people, or is most of your workforce salaried? How often do you need to onboard or hire workers? Do you hire seasonal staff? The more specific you get about your needs, the easier it will be to choose a system that checks all the boxes.  

Budget and ROI

Determine your budget upfront. How much are you willing to invest, and how much flexibility do you have for extra features that might increase costs? Think about the expected return on investment (ROI). Will this system save you enough time and resources to justify the price? 

You must also aim to go for a vendor that has the most transparent pricing. Inquire about what’s included in their packages and be sure to asks if there are additional charges and when those will apply.

Ease of use

A feature-packed system won’t help if it’s too complicated to use. If your team can’t get the hang of it, you might as well stick to manual processes. Look for a system that’s intuitive and with a smooth learning curve, especially if you want to hit the ground running as soon as possible.

Consider employee self-service functionality too. A huge part of HRIS is employee data. And aside from your HR team, your employees are also responsible in part for their data. Having a self-service portal feature lets your employees view and update their information, and that could be a key consideration when looking at different HRIS solutions.

Integration 

If you have existing systems, ensure your new HR system integrates smoothly. How quickly can the systems sync? What will the workflow look like? If integration is clunky or non-existent, that defeats the purpose of streamlining, so it’s worth moving on to a different option.

Implementation and support

You can only realize ROI with your HRIS once it is completely implemented. So, when shopping around for software and going through demo sessions, always ask vendors how long it will take to get up and running based on your specific needs.

The level of customer support during the early stages of implementation is also crucial. Will they guide you through the setup process and be available for ongoing help? Choose a provider that won’t abandon you once the contract is signed.

Scalability

If your business rapidly grows, can the software stay pace? It should be able to scale as quickly as you will. Otherwise, the system could become obsolete and incompatible with your requirements. Considering the cost of a new system and the learning curve involved in implementing it, it won’t be cost-effective in the long run. When you choose software, ensure it can handle future growth, and can be customizable enough when you need additional hr tools or modules.

Reputation

Check out a vendor’s track record and client base. Look at their customer stories, case studies, and online reviews. That can help you understand how their product works in different business scenarios and the problems they were able to solve for their clients. This will give you insight into their reliability and whether they’re the right fit for your business.

Why Workforce.com is the best HR software for small businesses with hourly teams 

Workforce.com isn’t just another HR platform—it’s built for businesses that rely on hourly workers. Whether in retail, hospitality, healthcare, or any sector with hourly workers, Workforce.com covers your HR needs, workforce management requirements, and delivers much more. Here’s why it’s the best choice. 

It simplifies HR administration and payroll.

Workforce.com does the heavy lifting that comes with the administrative aspects of HR, from recruitment, onboarding, time and attendance tracking, benefits administration, and payroll processing. 

Fill vacant roles easily with Workforce.com’s applicant tracking system. Speed up the hiring process by generating QR codes for job postings and allowing applicants to submit their personal details and answer role-specific questions. This helps identify qualified, saving you time on unnecessary interviews.

No more drowning in paperwork during employee onboarding. Workforce.com collects crucial employee details like tax forms, insurance information, bank details, and other personal employee information, saving time and reducing manual data entry. You can focus on welcoming and integrating new hires into the organization instead of processing forms.

Time and attendance tracking is also automated. Employees can clock in and out seamlessly, ensuring accurate hours and smooth payroll runs. You can review and approve timesheets online, quickly correcting any issues so payroll stays on track.

With all this data in one place, payroll processing becomes faster and more efficient. Overtime, time off, employee benefits, and other pay rules automatically apply, ensuring you always comply with labor regulations. Workforce.com’s payroll system also helps with withholding taxes and tax filing, saving you a massive amount of time and lets you shift your focus to growing your business.

It streamlines employee scheduling.

Workforce.com is built with a robust scheduling platform that lets you create and assign shifts in minutes. It has scheduling templates that you can copy and paste from one week to next, especially for shifts that remain the same over a period of time. Its built-in labor forecasting feature allows you to schedule shifts based on projected demand to confidently avoid being over or understaffed.

For businesses governed by predictive scheduling laws, Workforce.com helps you stay compliant by enabling faster scheduling and allowing you to send work schedules to employees well in advance. This keeps your team and regulators satisfied while providing employees with more flexibility and boosting their job satisfaction.

Also read: Predictive Scheduling Laws Explained: A Guide for Employers

It helps you retain top talent.

Workforce.com doesn’t just handle administrative tasks; it’s designed to help you retain your best workers. It includes tools for communication, feedback, and performance management to keep employees engaged and motivated.

Managers and employees can communicate directly within the platform, cutting down on confusion. Employees can also rate their shifts, giving you insights into what’s working and what needs improvement. This allows you to make real-time adjustments before minor issues become big problems.

It also has features that allow you to track action plans for employees who need to improve in certain areas and quickly show recognition for staff who are performing well. 

It scales with you.

Whether growing locally or expanding across state lines, Workforce.com scales with you. It manages everything from hiring to compliance, no matter the size of your business.

As you expand, the platform ensures you stay compliant with different labor laws across regions, so you won’t have to worry about legal complications.

On top of that, Workforce.com provides valuable insights into your business operations, helping you track labor costs, absenteeism, and other vital metrics. This allows you to spot patterns and fix potential issues before they impact your business.

It’s easy to use.

Workforce.com has a user-friendly interface, which means that your team can learn the ropes of the platform in no time. It also has a mobile app that employees can download on their devices, letting them view their schedules, receive notifications from their team, apply for leaves, and update their information.

It has a proven track record.

Amenity Collective, one of Workforce.com’s clients, have seen a reduction in administrative work by 85%. They are just one of the many organizations that switched to Workforce.com and experienced great results. Don’t just take our word for it—explore their testimonials and stories firsthand. 

Even better, book a demo today to see Workforce.com in action and discover how Workforce.com can drive growth and success for your business.