Timekeeping policy: what to include

A practical outline for a written timekeeping policy for hourly teams, with sample wording for clocking in, breaks, corrections and approvals.

You found a pro tip Add one line to your policy telling employees what to do when the system is down, such as writing start and end times on a paper form. Outages are rare, but they always happen on a busy day.
In shortA timekeeping policy tells employees how to record their working time and tells managers how to review it. It should cover who must record time, how to clock in and out, breaks, off-the-clock work, overtime approval, missed punches and corrections, approval deadlines and record keeping. Keep it short, apply it to everyone in the same role, and make sure employees are paid for all hours worked even when they break the policy.

Why a written policy matters

Federal law requires employers to keep accurate records of hours worked for non-exempt employees, and many states add their own requirements. A clear policy is how those records stay accurate day to day. It also protects the business: in a wage claim, a consistently applied policy that prohibits off-the-clock work and requires employees to report all hours is useful evidence. Without one, each manager invents their own rules, and small inconsistencies turn into pay disputes.

This guide focuses on the written policy itself. For day-to-day habits, see timekeeping best practices; for the records themselves, see record retention requirements.

1. Scope and purpose

Say who the policy applies to and why. Sample wording:

“This policy applies to all non-exempt (hourly) employees and to salaried employees who are asked to record time for projects or clients. Accurate time records make sure you are paid correctly for every hour you work and help us meet our legal obligations.”

2. How to record time

Name the approved method and say that it is the only one. If different teams use different methods, list them.

“Clock in when you start work and clock out when you finish, using the EZTime mobile app or the time clock at your location. Do not clock in or out for anyone else, and do not let anyone clock in or out for you.”

If you use location features, explain them plainly: when location is recorded and why. See our guide on choosing a time clock and our article on GPS and geofencing.

3. Start and end of work

Define when work starts. Many disputes come from tasks before or after the shift: opening the store, putting on protective equipment, loading a van, a pre-shift meeting.

“Do not start work before you clock in, and clock out only when you have finished all work. Pre-shift meetings, required training, setting up equipment and closing tasks are working time.”

Add a rule on early clock-ins if needed, for example that employees may not clock in more than a few minutes before the scheduled start without approval. Our article on early clock-in policies covers the options.

4. Meal and rest breaks

State how breaks are recorded, and follow your state’s break rules where they apply.

“Clock out for unpaid meal breaks and clock back in when you return. If you are interrupted during a meal break to do work, tell your manager so the time can be paid. Short rest breaks are paid and do not require clocking out.”

Under federal rules, short breaks of about 5 to 20 minutes are generally paid, and bona fide meal periods, usually 30 minutes or more when the employee is fully relieved of duty, can be unpaid. Several states have stricter meal and rest break laws; see our California break rules guide and break tracking.

5. Off-the-clock work is not allowed

This is the most important clause.

“All work must be recorded. Do not answer work calls, messages or email, or do any other work, while clocked out unless your manager has asked you to and you record the time. No manager may ask you to work off the clock. If this happens, report it to HR. You will be paid for all time worked.”

Pair the rule with an easy way to report extra time, and make sure managers know that unrecorded work must still be paid. See off-the-clock work.

6. Overtime approval

“Overtime must be approved in advance by your manager. If you work overtime without approval, you will be paid for it, but repeated unapproved overtime may lead to disciplinary action.”

Note the order: the employee is always paid, and the policy addresses the conduct separately. Refusing to pay for hours worked because overtime was not approved is not allowed under federal law. See FLSA overtime rules.

7. Missed punches and corrections

“If you forget to clock in or out, or make a mistake, submit a correction request in the app on the same day with the correct times and a short reason. Your manager will review it. Do not change time records without approval.”

Corrections should leave a record of the original punch, the change, who approved it and when. Our articles on missed punch corrections and forgotten clock-outs go deeper.

8. Review and approval

Weekly review routine
Who What When
Employee Review own timecard and request corrections By the end of the workweek
Manager Review exceptions, approve corrections and timecards Within one or two working days
Payroll Export approved hours; send back unresolved issues Before payroll cutoff

See our article on timecard approval workflows.

9. Rounding, records and discipline

If you round punch times, state the rule, and make sure it is neutral over time so employees are not underpaid; see our time clock rounding guide. State how long records are kept and who can see them. Finally, explain consequences for falsifying time records or clocking in for others, and link to your discipline policy. Buddy punching is covered in our guide on preventing buddy punching.

Rolling the policy out

  1. Share the policy in plain language and in the languages your team uses.
  2. Walk through it at team meetings and answer questions.
  3. Collect a signed or digital acknowledgment from every employee.
  4. Train managers separately on approvals and off-the-clock rules.
  5. Review the policy once a year and when laws or tools change.

How EZTime helps

EZTime puts the policy into practice: employees clock in from the mobile app or a kiosk, breaks are recorded, correction requests keep the original punch and the approval, and labor rule alerts flag missed breaks or overtime. You can also store the signed policy in the digital employee file.

Policy language you can adapt

Sample clause, not legal advice: “All non-exempt employees must record the time they start work, start and end each unpaid meal break, and stop work, using the company’s time clock app. Working off the clock is not allowed. If you forget to clock in or out, or you see an error, notify your manager the same day using the missed punch form. Managers will review and approve time before each payroll.”

Edit the wording to match your breaks, devices and payroll schedule. Our missed punch form and overtime authorization form fit with this clause.

Auditing your own timekeeping

Once a quarter, pick a sample of timecards and check them against schedules, sales or job records. Look for edits without a reason, breaks that always show exactly the same minutes and punches that never vary. These patterns can point to off-the-clock work or habits that need training. See our time audit guide.

Timekeeping policy check

Tick each topic your current policy covers.

0 of 6. Your policy is missing core sections. Start with recording time and off-the-clock work.

Frequently asked questions

Is a timekeeping policy required by law?

Federal law requires accurate time records for non-exempt employees, not a written policy. A written policy is the most practical way to keep records accurate and consistent.

Can I refuse to pay unapproved overtime?

No. Hours worked must be paid. You can discipline employees for breaking the overtime approval rule.

Should salaried employees track time?

Exempt employees are not required to under federal overtime rules, but you may ask them to record time for projects, billing or leave tracking.

Can employees edit their own time records?

Best practice is for employees to request corrections and managers to approve them, with the original record kept.

How often should timecards be approved?

Weekly is common, and at least once per pay period before payroll cutoff.

What should happen when someone forgets to clock out?

The employee submits a correction with the actual time, and the manager reviews and approves it.

Where to go next

More on this topic

Collect it digitally, with a signature

EZTime’s digital HR forms collect e-signatures and keep the signed copy in the employee’s digital file, with reminders before a document expires.

Disclaimer: This guide is general information only and is not legal advice. Sample wording should be adapted to your business and checked against federal, state and local law by a qualified professional.