Audit reveals compliance issues in Atlanta's Oracle Time and Labor implementation

In the heart of Atlanta's city hall, the Finance Executive Committee convened on April 30, 2025, to address pressing issues surrounding the city's payroll system. The atmosphere was charged with anticipation as Dwayne Braithwaite, alongside his audit team, presented a performance audit report on the Oracle Time and Labor (OTL) module, a critical component in the city's efforts to streamline timekeeping and payroll processes.

The audit was prompted by previous concerns regarding mismanagement in timekeeping, including misapplied work rules and miscalculated overtime. Braithwaite outlined the audit's scope, which spanned from February to February, and highlighted the importance of assessing whether the new OTL module effectively mitigated these risks or inadvertently introduced new ones.

The findings revealed a mixed picture. While the OTL module's automated rules were designed to enhance accuracy in employee payments, exceptions within the system diminished its overall effectiveness. Notably, 7% of nonexempt employees were still being paid by schedule, raising compliance concerns with the Fair Labor Standards Act (FLSA). The Atlanta Fire Department, with its unique scheduling needs, was identified as having the highest number of nonexempt employees paid this way, complicating adherence to federal regulations.

Braithwaite emphasized the necessity for all nonexempt employees to clock in and out, either through time clocks or city laptops, to ensure compliance with FLSA requirements. He pointed out discrepancies in how different departments treated timekeeping, with some employees in similar roles facing different requirements. This inconsistency could lead to potential legal challenges and inequities among city workers.

The audit also recommended eliminating compensatory time for exempt employees, a move that could simplify payroll processes. Additionally, it urged the human resources department to ensure accurate classification of employees following a recent compensation study, reinforcing the need for robust quality control measures.

As the meeting drew to a close, the committee members were left with a clear understanding of the challenges ahead. The recommendations put forth by the audit team not only aim to enhance compliance and fairness within the city's payroll system but also reflect a broader commitment to transparency and accountability in city operations. The path forward will require careful consideration and decisive action to ensure that all employees are treated equitably and that the city meets its legal obligations.