This is the latest post in our Success Story series. Come back every month to read about another successful IDI customer.
Coastal Commerce Bank is a full-service banking institution with multiple branches throughout Louisiana. Their strength and stability come from a dedication to serve their customers. By holding to that ideal, they provide the people of South Louisiana a superior banking choice every day.
Incentive Pay Creates a Major Challenge
Like many financial services companies, Coastal Commerce Bank has overtime-eligible employees who can earn incentives throughout the year. To stay in compliance with the Fair Labor Standards Act (FLSA), these incentives need to be applied against overtime earnings in the period that the incentive applies to. For example, Coastal Commerce Bank has a monthly “call-in” incentive that is posted in one month but based on activity in the prior month. Per FLSA rules, an employee who earns the “call-in” incentive is entitled to a pay adjustment for any overtime wages from the prior month.
In addition, Coastal Commerce employees can earn quarterly and annual bonuses based on productivity. All of these different incentives need to be applied retroactively to the earned period to adjust overtime earnings.
The payroll team at Coastal Commerce Bank was performing these adjustments manually and with spreadsheets. In each pay period this resulted in significant time investment and growing concerns about accuracy and potential audits.
Solution: Automating Payroll Processes
Coastal Commerce needed automated time and payroll services. Their payroll provider, a longstanding IDI partner, approached us to help automate their processes for applying incentives to prior periods.
Based on Coastal Commerce Bank’s business needs we worked with the payroll service to implement our Time Bank™ integration solution. Time Bank was configured to read employee overtime hours and incentive pay across their three time frames (monthly, quarterly, annual). Time Bank would automatically calculate the proper overtime adjustments owed to the employees that factored in the incentives against prior period overtime pay. Time Bank ensures that each employee gets their proper overtime earnings and eligible retroactive adjustments posted to their pay check. This automated process provides more accurate payroll, financials and reporting in case of employee or government audit.
“IDI’s Time Bank fulfills our needs for FLSA overtime compliance by correctly calculating prior period adjustments,” said Brandy Markus, Human Resources/Marketing Coordinator at Coastal Commerce Bank. “The process works reliably each pay period and has become second nature to our team.”