A time clock records when each employee starts and stops work so you can pay hourly staff accurately and keep the records federal law requires. Today most businesses use cloud time clock software: employees clock in from a phone app, a shared tablet kiosk or an NFC tag, and managers approve hours and export them to payroll. Below are the questions employers ask most, grouped by topic.
To record clock-ins, breaks and overtime automatically, see EZTime time and attendance software.
It is any system that records the start and end of work, and usually breaks, for each employee. It can be a wall-mounted punch clock, a biometric terminal, a shared tablet, or an app on the employee’s phone. The output is a timecard that shows hours worked per day and per workweek.
A time clock captures punches. Time and attendance software also calculates hours, applies overtime and break rules, flags missed punches, handles time off and sends approved hours to payroll. Read the full comparison: time clock vs. time and attendance system.
No. Under the Fair Labor Standards Act (FLSA) you must keep accurate records of hours worked for non-exempt employees, but the Department of Labor lets you choose the method, as long as the records are complete and accurate. A time clock is simply the most reliable way to meet that requirement.
Non-exempt (usually hourly) employees, because you owe them overtime and must record their daily and weekly hours. Many businesses also track exempt staff for scheduling, PTO or project costing, but that is a policy choice.
Match the method to where work starts. Field crews do best with a GPS app, a single busy entrance with a kiosk, and multi-site teams or indoor sites with weak GPS with NFC tags. Many businesses mix methods in one account. Compare them side by side in NFC vs. GPS vs. biometric time clocks, or answer a few questions in the time clock quiz.
Yes. Use a shared web or tablet kiosk at the location. With EZTime, attendance reporting by SMS is also available, so one account can cover employees with and without smartphones.
It verifies identity well, but it costs more upfront and brings privacy obligations. Illinois, Texas, Washington and Colorado regulate biometric data, and Illinois allows private lawsuits. See time clock app vs. biometric time clock before you buy hardware.
Cloud time clock software is usually priced per employee per month. Published prices from major US vendors range from roughly $2.50 to $13 per user per month, and some add a base fee. Hardware is extra if you choose it: basic fingerprint clocks start around $160-$200, and facial-recognition terminals can cost several hundred dollars or more. Full breakdown: how much a time and attendance system costs.
Plans start at $2 per employee per month ($1.60 billed yearly), with a $20 monthly minimum and a 14-day trial with no credit card required. Mid and top plans are $4 and $6 per employee per month. See pricing.
Ask every vendor about base fees, per-location fees, minimums, hardware, setup and payroll integration fees, and whether GPS, scheduling or reports cost extra. Our small business time clock cost guide shows totals by team size.
Federal rules allow rounding to the nearest 5, 6 or 15 minutes only if it is neutral over time and doesn’t consistently underpay employees. In California the question is unsettled and meal-period punches may not be rounded. Details: time clock rounding rules.
Federal law doesn’t require meal breaks, but if you give an unpaid meal period of 30 minutes or more, the employee must be fully relieved of duty. Many states, including California, New York and Illinois, require meal breaks. Recording break punches is the easiest way to prove compliance. See California meal and rest break rules.
Good software totals hours per workweek, warns managers as employees approach 40 hours (or a state’s daily limit) and calculates overtime at 1.5 times the regular rate. Read FLSA overtime rules and try the overtime calculator.
The manager corrects the timecard with a note, and the employee confirms the corrected time. Keep the audit trail. Step by step: employee forgot to clock out.
Under 29 CFR Part 516, keep payroll records for at least three years and basic time cards for at least two years. State law can require longer.
Use a method tied to the person or the place: a GPS geofence, an NFC tag the employee has to tap in person, or a biometric terminal. Clear policy and manager review of exceptions matter as much as hardware. More in how to prevent buddy punching.
Accurate, consistent records are your best defense. When records are missing, courts can accept the employee’s reasonable estimate of hours worked. See how to protect your business from wage and hour claims.
With a cloud system, a small team can start the same day: add employees, set locations and clock-in methods, define overtime and break rules, and send the app invite. Larger rollouts usually start with one location as a pilot.
Write a short timekeeping policy, show employees the clock-in method in person, make the first week a learning week and review missed punches daily. Our attendance policy guide has a template.
Most cloud systems export approved hours to payroll so nobody retypes timecards. EZTime exports payroll-ready reports and offers an API for integrations.
No specific device is required. The FLSA requires accurate records of hours worked for non-exempt employees, and employers may use any timekeeping method that keeps those records complete and accurate.
A cloud time clock app on employees’ own phones, or a tablet kiosk you already own, avoids hardware costs. Software typically starts at a few dollars per employee per month.
Many employers do, but offer an alternative such as a shared kiosk for employees who don’t want to, and check state rules on reimbursing work use of personal devices.
A well-designed app records location at the moment of the punch, not continuously. Check each vendor’s settings and tell employees exactly what is recorded.
Some can. With EZTime NFC clock-in, a punch made without signal is saved on the phone with the original time and syncs when the connection returns.
At least two years for time cards and three years for payroll records under federal rules. Some states require longer, so check your state.
Answer a few questions and get a recommended clock-in method and plan.
Requirements, questions for vendors and a buying checklist.
What you pay per employee, for hardware and for setup.
The 40-hour workweek, regular rate and worked examples.
How rounding works under the FLSA and when it becomes risky.
This page is general information for U.S. employers and isn’t legal advice. Federal, state and local rules change; check current requirements for your state or speak with an employment attorney.