The Ins and Outs of Timekeeping

“I’m using a computerized timekeeping system for my employees. I love the convenience because it can be set to automatically clock them in and out based on their normal schedule and I don’t have to remind them about a missed punch. Although they take meal breaks at different times, I’ve discovered the system can also be set to automatically punch them out/in for the meal break. Is there a problem with the system using the same start time for everyone’s meal breaks even though they actually vary?”

Your HR Survival Tip

The meal break isn’t the only thing you should be concerned about here. Aside from knowing what to pay your employee, having timekeeping information is critical for your company.

Your company needs proof you have paid the employee properly for time worked, any overtime worked, late or missed or short meal breaks, requested time off, etc. Without proof, California will believe whatever your employee says. Plus, the state can review up to 4 years of ALL your payroll information when conducting an audit.

Here are a few timekeeping basics:

• Only non-exempt (hourly) employees are required to track their time. You can also require exempt (salaried) employees to track time but it’s normally for job costing purposes rather than tracking their total time worked.
• Require employees to clock in only for themselves and no one else. It’s fraud if they clock in or out another employee.
• If you’re using handwritten timecards, require employees to put the actual time rather than the scheduled time (i.e., enter 8:02 instead of 8:00). Timecards showing 8:00 to 5:00 everyday on that sheet won’t hold up in court as proof you’ve properly paid your employees. Timecards like that look fake because no one actually clocks in and out exactly at the same time every workday.
• You should never enter or correct a time for the employee without the employee’s signature authorizing or requesting it. Your entry could be considered invalid without proof and the employee could say you eliminated their overtime.
• Meal breaks must show actual times just like the day’s in and out times. You need to have proof the employee began the meal period within the first 5 hours of work and that it lasted at least 30 minutes. If you don’t have this proof, you’ll owe that employee one extra hour of pay (penalty pay) every day it happens.
• Do not have your timekeeping system automatically deduct 30 minutes for meal breaks. Again, you’ll have no proof the employee actually took their meal break.
• If you are using a computerized or electronic timekeeping system, make sure employees have a personal login and password or some other method to confirm no one else could have entered the information.

Timekeeping seems to be equally hated by all but it is a necessity. Ensure your timekeeping processes will actually keep you out of trouble instead of making you vulnerable to claims.