Distribution Center Attendance and Overtime Spiral

The most serious conflict is daily versus weekly overtime. The union contract requires overtime after eight hours in a day, but the system is configured for weekly overtime only. That means employees working four 10-hour days may be underpaid for daily overtime, creating wage-and-hour exposure. The fix is a pay rule with a daily threshold, weekly threshold, and correct stacking so premium is not double-counted. The attendance policy is also misconfigured in practice: point exceptions are manual and undocumented, so the system cannot enforce consistency or support discipline. The 48-hour posting and 24-hour swap rules need to be represented as scheduling rules with validation, not supervisor discretion. Sunday understaffing is a forecast and staffing-model issue, not an attendance issue. Finally, text-message schedule changes undermine the official schedule and may violate the posting requirement. Resolve these before optimizing shifts; otherwise optimization will produce schedules that cannot be executed compliantly.

Start by separating protected from unprotected absence. Configure absence types for intermittent leave, FMLA, workers' compensation, and approved personal leave so they do not generate attendance points. Use eligibility rules and documentation requirements. For unprotected absence, define point values by pattern, such as no-call/no-show versus late notice, and require supervisor comments for any exception. Replace manual excuse with a workflow that captures reason, approver, and audit trail. Add an occurrence review at five points rather than automatic termination at seven; the review should include HR and the union where required. Configure attendance tracking against the posted schedule, not actual clock-in alone, and reconcile timeclock edits. Provide employees a self-service view of points and a dispute path. Train supervisors on the policy and run a parallel audit for one month before enforcing discipline. This reduces grievance risk and gives the employer defensible data.

Rebuild the forecast with the new customer contract as a separate volume driver, using Sunday volume by hour rather than last year's weekly total. Generate schedules from the forecast, then validate against the 48-hour posting rule and the swap rule. Introduce shift bidding or self-scheduling within the contract's constraints to improve coverage and perceived fairness. Create a part-time or flex pool for predictable Sunday peaks rather than relying on overtime. Cross-train employees across functions so absent employees can be covered without premium pay. Set an overtime approval workflow before the shift, with manager and employee acknowledgment; after-the-fact approval should be exception-only. Track schedule adherence, fill rate, absence rate, overtime percentage, and swap compliance weekly. Target a staged reduction: first cut after-the-fact overtime, then reduce Sunday overtime through flex staffing, then optimize shift start times. Do not cut headcount before the forecast and attendance data are stable.