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As a small business owner, navigating the complexities of legal compliance can be completely overwhelming. It’s not uncommon for employers and contractors to unintentionally violate employment laws imposed by the Department of Labor (DOL) and the Defense Contract Audit Agency (DCAA). Ensuring compliance with DOL and DCAA regulations is not only essential if you want to win government contracts but will also help your business maintain reliable accounting practices, avoid legal penalties, and keep your employees happy!
Before launching your barbering or cosmetology business, make sure you understand which labor laws apply to you and the steps you need to take to maintain compliance. Here are some fundamental compliance tips from Final Touch Barber Academy to get you started.
Optimize Shift Scheduling
DCAA compliance is largely focused on time-tracking procedures. It’s important to be meticulous when tracking employee hours and payroll so you can stay compliant with government labor regulations. Good time tracking procedures start with smart shift scheduling.
Scheduling mistakes can lead to overtime costs, employee dissatisfaction, and wasted time. Eliminate scheduling errors and get organized with job scheduling tools like QuickBooks Time. This tool makes it easy to manage employee job schedules and keep team members in the loop. In turn, this allows you to create a forecast for future job costing and keep staffing records for up to three years.
Track Employee Hours Accurately
Accurate time tracking is essential for DCAA compliance. Employees must submit their time daily to be approved by a supervisor at the end of every work period. Doing so manually can be time-consuming and tedious.
Manual time tracking is also prone to error and vulnerable to fraud. Instead of having your employees track their hours on a written spreadsheet, invest in online time tracking software to ensure optimal accuracy.
Monitor Overtime and Time Off
The DOL has established clear rules regarding overtime. While there is no limit to the number of hours your employees can work in a week, employees who work over 40 hours need to be paid extra for their overtime. Tracking hours will ensure your workers receive the overtime pay they are entitled to. Keep in mind that your DCAA-compliant timesheets must include overtime and paid time off, even if your employees are on a salary.
Looking to rein in overtime spending? Workfront suggests limiting team meetings, monitoring how your staff spend their work hours, and giving your employees the tools, they need to work efficiently.
Keep Clear and Accurate Records
Maintaining clear accounting records is essential for avoiding issues with compliance and navigating audits. The DOL can audit employers any time, regardless of whether or not an employee issues a complaint. Wage and hour violations are common among low-wage industries like agriculture, food service, and personal care services like barbering. By keeping organized records, you will be better prepared for an audit by the DOL.
Create a Safe and Healthy Work Environment
The Occupational Health and Safety Administration (OSHA) is a DOL agency that regulates health and safety conditions in the workplace. As a business owner in the beauty industry, it’s your responsibility to provide a workplace that is free from serious hazards including sharp objects, slips and trips, electrical hazards, and chemical exposure. Prioritizing safety in your workplace will help you avoid costly lawsuits, workers’ compensation claims, and high staff turnover rates.
Are you EXCITED to start your own barbering business?
Before you set up shop and hire staff, take some time to review your legal obligations. Maintaining compliance with the DOL is essential for the long-term success of your new venture, so don’t take any shortcuts! If you need to acquire your state barber’s license, Final Touch Barber Academy can help! Our state-approved, vocational-centered Barbering Program will teach you everything you need to pass the state board examination and build your own barbering business! Contact us today!
Download this page HERE. Updated DOL and DCAA Compliance docx.