Employers are required by law to have a system in place for tracking employee attendance of all non-exempt and hourly-wage employees. Many businesses, both large and small, have been using manual time clocks for this purpose. Unfortunately, in this day and age, traditional card punching time clocks have become less effective in truly protecting employers and ensuring they are compliant with the Fair Labor Standards Act.
Modern time clock online systems offer a wide range of punch in options that include swipe cards, proximity readers, and the best of all biometric fingerprint recognition technologies. Employees punch in and out at the start and finish of each work day, as well as for extended breaks such as meal breaks or personal appointments.
Tracking employee attendance and maintaining work hour records are mandatory for employers by both state and federal laws. Every business organization is required to maintain some form of time record for non-exempt employees. This can either be a punch time card, a paper time sheet, or electronic record generated through an electronic employee system such as a time clock online. These stored time records should clearly specify the total number of hours for each day, as well as paid time off and sick leaves. Specific requirements in this regards may differ from state to state, so keep yourself well informed with the particular requirements of your state law.
Employee time documents should be maintained in such a way that the essential work hour data recorded by tracking employee attendance clearly indicates the following:
1. Details of the start and end of each payroll cycle
2. The name of every non-exempt employee paid
3. The number of hours worked by each employee, each day of the pay cycle
4. Total number of work hours during each payroll cycle for each employee
5. Separate details of hours paid at regular time, as well as at overtime
6. Details of missed scheduled days that are yet to be paid to the employee
7. Details of paid time off drawn by each employee
8. Details of bonuses, incentives or tips paid to each employee (if any)
It can be rather difficult to follow these steps when an employer is using manual time keeping methods. A better approach to ensure FLSA and other labor law compliance is to use a time clock online system so that all of your data is not only up-to-date, but is also accurate and to-the-minute. Whether you use an automated or manual system, it is recommended that you perform random audits of employee payroll records to make sure everything is in order.