Definition: Geofencing is the use of GPS or other location data to define a virtual perimeter around a physical location. In time and attendance software, a geofence lets employees clock in or out on a mobile device only when they are inside an approved area, or flags punches made outside it.
A geofence is a shape on a map, usually a circle with a set radius around an address or a custom polygon drawn around a site. The employee’s phone reports its location when they try to clock in. The time clock app compares that location with the geofence and either accepts the punch, rejects it, or accepts it with a flag for manager review, depending on how the employer configures the rules.
Geofencing is especially useful for teams that do not pass a central time clock: construction and landscaping crews, home health aides, cleaning services, security officers, delivery drivers, and multi-location retail. It replaces “I was there” with a location record attached to each punch.
| Setting | Options | When to use |
|---|---|---|
| Boundary shape | Radius around an address, or custom polygon | Radius for simple sites; polygon for large or oddly shaped sites |
| Radius size | Small (store) to large (campus or farm) | Large enough to include entrances and parking where work starts, small enough to exclude nearby businesses |
| Enforcement | Block outside punches, or allow and flag | Flag when employees sometimes start work off-site legitimately |
| Multiple sites | One geofence per job site or client | Field service and multi-location teams |
| Reminders | Prompt to clock in or out near the boundary | Reduce missed punches without auto-punching |
Hypothetical: A landscaping company maintains a 12-acre business park. A 100-meter radius around the street address covers the main building but not the far parking lot where crews unload equipment. If the geofence blocks punches outside the radius, crew members who start unloading at 7:00 a.m. cannot clock in until they walk to the building at 7:10. Across a crew of 6, that is 6 × 10 minutes = 60 minutes of work per day happening before the clock starts. At $20.00 an hour, that is $20.00 per day, or $100.00 per five-day week, in wages the company owes but is not recording.
The fix is to draw a polygon covering the whole site, including the equipment lot, or to switch that site to allow-and-flag mode. The goal of geofencing is to confirm presence, not to delay the start of paid time.
Geofencing does not change what counts as hours worked. DOL Fact Sheet #22 explains that “employ” includes “to suffer or permit to work,” and that the workday runs from the start of the employee’s first principal activity to the end of the last, which can be longer than the scheduled shift. It also states that travel during the workday as part of the principal activity, such as moving between job sites, is work time, while ordinary home-to-work travel is not. Under 29 CFR 785.11 to 785.13, work the employer knows or has reason to believe is happening must be counted, even off the premises, and management must actively prevent unwanted work because a rule against it is not enough.
Practical implications:
Employees are understandably concerned about location tracking. Good practice is to collect location only at the moment of clocking in and out, or during paid work time if your operation requires it, and to explain this clearly in a written policy. Tell employees what is collected, when, why, who can see it, and how long it is kept. Some states have laws on electronic monitoring or location data, so review the rules where your employees work before rollout. Offer an alternative clocking method, such as a kiosk or NFC tag, for employees who cannot use a personal phone.
EZTime’s GPS mobile time clock with geofencing lets you set boundaries for each site and decide how outside punches are handled, and NFC tags, a tablet kiosk, or biometric clocks are available where phones are not practical. Managers see punches next to schedules built with AI shift scheduling and shift templates, overtime and break alerts flag issues early, and timecard corrections keep an audit trail. Payroll-ready Excel/PDF exports work with any payroll software. Learn more about the mobile app and attendance clock, or see pricing: from $2/employee/month with a 14-day trial.
This is general information, not legal advice.
It is a virtual boundary around a job site. The app checks the phone’s location when an employee clocks in or out and accepts, blocks, or flags the punch based on whether it is inside the boundary.
No. Under the FLSA, work the employer suffers or permits is hours worked, including work done before reaching the geofence or travel between job sites during the workday.
Location-based timekeeping is widely used, but some states regulate electronic monitoring or location data. Check the rules where employees work and publish a clear written policy.
Large enough to cover everywhere work begins, including parking and staging areas, but small enough to exclude nearby locations. Custom polygons work better for large or irregular sites.