A clocking in and out policy sets guidelines for accurately recording employee work hours, ensuring legal compliance, and properly monitoring employee performance and safety. Your clocking in and out policy template should identify eligible employees, explain timekeeping practices, indicate timesheet approvals, mention enforcement and disciplinary actions, and include an acknowledgment section.
Download our free time clock policy template below to create your own time tracking policy.
FILE TO DOWNLOAD OR INTEGRATE
Clock In Clock Out Policy Template
Download as PDF Download as Word Doc Download as Google Doc
If you need help creating a timeclock policy, or need affordable time and attendance options, consider Homebase. It’s free for one location and up to 20 employees.
Select Download TypeHourly employees, both full-time and part-time, need to record time so you know how much to pay them. While paper time sheets can be used for simplicity, they can result in intentional and unintentional errors. We recommend using time tracking software to help you efficiently track your hourly employees.
It’s a good idea to have every employee track their hours. Your small business gets great insight on how much time employees log and can better track costs and time for different projects. Learn more about tracking time in our guide on how to track employee hours.
Many assume that those paid a salary do not need to track their hours, but in some cases, they do.
There are two types of salaried employees: exempt and nonexempt.
In industries like retail, healthcare, customer support, hospitality, and food service, employees are on call if their employer needs them to work on short notice. Timekeeping requirements for on-call employees depend on whether the employee is considered “engaged to wait” or “waiting to be engaged.”
In general, on-call employees should clock in and out when they begin and end their shifts and accurately record all time spent on-call or engaged in work-related activities. Employers should also consider providing on-call employees with guidelines or expectations around when they should be available and what activities they should be engaged in while on call.
Check out our guide to on-call scheduling for more information as to how it works and how to approach it.
Your clocking in and out policy should be compliant with the Fair Labor Standards Act (FLSA), while outlining eligibility, clock in and out procedures, timesheet approval methods, disciplinary actions, and more.
In your policy, clearly explain to employees your expectations of how they clock in and clock out. This includes how and where they will clock in and out, if you round hours, how overtime is calculated, and required breaks.
Businesses are allowed to round hours, though you are not required to do so. If you choose to round hours, make sure you note this in your policy so your employees are aware. Under the FLSA, you can round hours to the nearest quarter-hour. You must round fairly, however, rounding up and down appropriately.
For minutes one to seven, round down; for eight to 14, round up. For example, if an employee clocks in at 8:29 a.m., you would round up to 8:30 a.m. If that employee clocked out at 5:05 p.m., you would round down to 5 p.m.
Read our in-depth guide on how to convert minutes for payroll and download our free conversion chart for an easy time converting time.
Your policy should address overtime calculations. In most states, eligible employees who work more than 40 hours in one workweek are entitled to overtime pay at 1.5 times their normal hourly rate. In some states, like California, and some cities, overtime is calculated more frequently—so ensure you’re following the law when running payroll in California or in your state.
Compliance note: Employers must NOT require or allow employees to work “off the clock” without compensation. Learn more about how to calculate overtime and download our free overtime calculator.
Your policy should discuss company breaks. Although the FLSA does not require employers to provide meal and rest breaks, if you choose to do so, take note that rest breaks are compensable as work hours according to federal law. Additionally, some states require that employers provide paid rest breaks of 10 to 15 minutes for every 4 hours worked.
For meal breaks, federal law requires that businesses provide non-exempt employees with a 30-minute unpaid break for every 8 hours worked. Check your state or local laws, as some jurisdictions do require breaks, depending on the number of hours your employee is scheduled to work.
If an employee takes a break but cannot step away from their duties, you are required to pay them. For example, if you have a receptionist who eats lunch at their desk and answers the phone during their lunch period, you must pay them for the entire lunch break, even if they answer only a few calls.
Compliance note: Travel time that is considered “work” time, such as time spent driving between job sites, must be accurately recorded and compensated. This must NOT be filed under breaks.
Managers or supervisors should verify that the hours recorded on the timesheets match the hours worked by the employee and confirm that any overtime or time-off requests have been properly approved. It helps to avoid errors and potential legal issues down the line.
A good clocking in and out policy should notify employees that they will be required to electronically or physically submit their timesheet to their manager for approval at the end of the workweek or pay period. This will help keep payroll accurate and your overhead costs in check.
Use our free downloadable time sheet templates if you need a simple way to keep track of logged time.
Your policy should include information about abuse and dishonesty. Effective employee management often requires disciplinary action when workers abuse a policy—a clock-in/clock-out policy is no exception.
Common violations include the following:
For violations of this policy, we suggest sticking with the three-strikes approach—a form of progressive discipline—and making the first offense a minor disciplinary action, followed by a written warning for a second violation. A third violation should be severe and may include termination. This type of behavior is inappropriate and costs your company money.
The final piece of your clocking in and out policy sample is a section of acknowledgement where employees sign that they have received and reviewed the policy in full. This ensures that every employee understands what is expected of them and the consequences for not adhering to the policy.
The acknowledgement section should include the employee’s name, signature, and the date signed.
There is no federal law for clocking in and out, and the FLSA does not mandate that your small business use a time clock. However, you must maintain an accurate record of each employee’s hours worked for hourly and nonexempt salaried workers.
To give you a good idea, here are some of the most important details that you must keep for at least three years for each employee:
Check out our in-depth payroll records guide for more information on what records to keep and for how long to keep them.
A good clock-in/clock-out tool generates reports for you, so you can keep legal records in one place. Homebase, our top-recommended time and attendance software, lets you track employee hours, prep for payroll, remain compliant, and better control your labor costs.
Clocking in and out for work ensures that an employee’s time is recorded accurately for payroll purposes. Having a policy in place sets the standard for what is required and the consequences of not properly recording time.
What is the system for employees to clock in and out?The system used to clock in and out varies depending on your small business needs. You can use simple pen and paper to record time, a spreadsheet, or time tracking software.
How do you get employees to remember to clock in and out?A timekeeping policy is a great place to start in helping employees remember to clock in and out. A policy reminds them of the rules, regulations, and consequences.
Accurately tracking time is crucial for any business type and size to maintain their budget. To achieve this, you must have a clear policy on clocking in and out so that all employees understand how to record their time and what happens if they violate the policy.
Find Jennifer On LinkedIn
Jennifer Soper has 25+ years of writing and content design experience, working with small businesses and Fortune 100 companies. For over a decade, Jennifer worked as an HR generalist, providing expertise in accounting, payroll, and HR by implementing payroll and benefits best practices and creating onboarding and employee-relations documentation.
