Healthcare Network Reduces Payroll Errors by 94%

The Challenge

A regional healthcare network with 600+ employees across five locations was averaging 47 payroll error corrections per pay period. An internal audit revealed $112,000 in underpaid wages over 18 months — driven by misclassification of 34 nursing and clinical roles as FLSA-exempt and inconsistent shift differential calculations.

The Catapult Approach

Catapult conducted a full FLSA classification audit across all 600+ positions, identified misclassified roles, and developed a remediation plan including recalculated overtime for 18 months and a phased back-pay schedule. Catapult then rebuilt the payroll configuration in the client HRIS, implemented automated shift differential rules, and trained the payroll team on FLSA healthcare exemption rules and the 8/80 overtime method.

Results

• ✓Payroll error rate reduced from 47 corrections per cycle to fewer than 3 — a 94% improvement
• ✓$112,000 in back pay distributed over 60 days without employee disputes or DOL involvement
• ✓34 positions reclassified with new job descriptions documenting exempt/non-exempt status
• ✓Automated overtime calculations implemented across all five locations
• ✓Payroll team trained on FLSA healthcare provisions and 8/80 overtime election
• ✓Zero wage-and-hour complaints in the 12 months following remediation