Time Tracking
What is time tracking and which employees need it?
Time tracking is the practice of recording the hours worked by employees, typically through digital time clocks, timesheet software, or HRIS-integrated tools. It is required for non-exempt employees under the FLSA so that overtime, minimum wage compliance, and pay can be calculated accurately. Exempt employees generally don't need time tracking for FLSA purposes, though some employers track exempt time for project costing or PTO management. Common platforms include ADP, UKG, Workday, BambooHR, and standalone tools like Tsheets.
Time tracking is the foundation of FLSA wage-and-hour compliance for non-exempt employees. The FLSA requires employers to keep accurate records of hours worked, regular rate, overtime, and total wages, and the burden of proof in wage disputes falls on the employer. That means inaccurate or missing time records create back-wages exposure that can cumulate into class actions. Modern time tracking systems make compliance straightforward when configured correctly; the failures usually come from manager behavior (off-the-clock work) rather than system gaps.
Who Legally Needs Time Tracking
Non-exempt employees under FLSA. The FLSA requires accurate records for hours worked daily and weekly, regular rate of pay, overtime hours and pay, deductions, and total wages. Exempt employees generally don't require time tracking for FLSA, though many employers track exempt hours for project costing or leave management.
Common Time Tracking Tools
HRIS-integrated: Workday, UKG, ADP. Standalone: Tsheets/QuickBooks Time, When I Work, Deputy. Hardware: Kronos clocks, biometric scanners. Mobile-first: Hubstaff, Toggl. Match the tool to the workforce: hourly hospitality benefits from clock hardware; remote knowledge workers benefit from mobile or browser tools.
Where Time Tracking Compliance Goes Wrong
Off-the-clock work (employees responding to email after hours without recording). Automatic meal-period deductions without verifying the employee actually took the break. Rounding practices that systematically favor the employer. See hours worked for the full FLSA framework.
Running Time Tracking Compliance That Holds Up to Audit
Pick a tool that fits the workforce. Train managers on off-the-clock prevention. Audit time records monthly against schedule and payroll output. Coordinate with onboarding so new non-exempt hires understand timekeeping rules before their first shift. DOL reference: dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping.
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