Time clock guidelines for hourly staff

In the event you personal or handle a small enterprise and have hourly staff, you know the way essential it’s to be compliant with native legal guidelines and precisely monitor your workforce’s hours, PTO, and time beyond regulation.

However conserving monitor of all the mandatory guidelines and rules isn’t straightforward, particularly once you’re juggling the opposite duties that include working a enterprise.

Unsure what time clock guidelines you have to be following? We’re right here to assist! We’ll stroll you thru the principle time clock guidelines for hourly staff and present you the way Homebase’s time clock can prevent money and time.

Right here’s what we’ll cowl:

  • How non-exempt and hourly staff ought to clock out and in
  • 6 time clock guidelines that each administration and employees must comply with
  • Widespread time clock rule violations
  • How to decide on the precise time clock software program in your workforce

How non-exempt staff and hourly staff ought to clock out and in

Non-exempt staff sometimes earn lower than a minimal quantity decided by the Division of Labor and are subsequently entitled to minimal wage and time beyond regulation pay once they work greater than 40 hours every week. This offers them a unique standing to exempt staff who’re categorised as government, skilled, or administrative employees. This group earns the next wage and subsequently doesn’t qualify for the time beyond regulation provisions of the Fair Labor Standards Act (FLSA).

Hourly staff are additionally non-exempt staff. However whereas non-exempt staff could be paid on a wage or hourly foundation, hourly staff obtain an hourly wage for the work they do slightly than a salaried quantity.

Since each non-exempt and hourly staff are compensated on an hourly foundation and entitled to time beyond regulation pay, it’s important for each authorized and enterprise causes they’re clocking out and in earlier than and after their shifts.  

In the event that they don’t, you may not understand that they’ve labored greater than 40 hours that week and are entitled to overtime pay. This sometimes means the next price of pay (a minimum of time and a half their common price of pay for US staff). You may additionally be paying for hours that haven’t been labored, for instance, when staff arrive late or clock in early.

When you’ve got each exempt and nonexempt staff, guarantee they know that they may must comply with totally different units of guidelines in relation to time and compensation.

By making certain staff are paid appropriately for his or her work, you gained’t find yourself paying extra for labor than what was initially budgeted for. On the similar time, by accurately paying staff, you’ll keep away from pointless authorized complications.

6 time clock guidelines for hourly staff

No matter what system or app your online business makes use of in your worker time clock, there are some guidelines and finest practices that each you and your employees ought to comply with to precisely log time and preserve processes working easily. Let’s break a few of them down:

1. Have an efficient time monitoring system

An effective way to make sure you’re following all the mandatory time clock guidelines for your online business is to have an correct time monitoring system for worker hours and time without work.

Whereas it’s potential to manually monitor time with a paper timesheet or punch card, this may be very gradual and makes payroll and time card approval tough to finish. You don’t need to undergo the tedious course of of getting staff manually punch out and in solely to switch that info into your payroll software program and different digital functions wanted to run your online business.

You may as well think about using an ID badge system or scanner, however there’s at all times the chance that an worker will overlook their badge and must manually clock out and in anyway. Plus, this selection doesn’t work properly for workers who sometimes must work off-site and might’t bodily scan in.

An image showing Homebase's time tracking feature. Each employee has a profile photo, and their hours worked for the pay period are displayed next to the photos.
Homebase makes time monitoring straightforward and intuitive. Supply: Homebase

As a substitute of utilizing a bodily timesheet or an ID scanner, utilizing cell instruments to trace hours and PTO saves money and time, and it’s extra handy for each enterprise house owners and employees. 

Homebase’s time monitoring and timesheet options make it an excellent selection in your whole workforce. You may simply monitor hours, breaks, and time beyond regulation out of your laptop, iOS or Android units, and even POS techniques. And on the finish of every week, the app will robotically create correct timesheets you should utilize for payroll and different processes.

Homebase presents a number of different time clock options so you possibly can select which one is finest in your workforce.

2. Forestall time theft

Time theft is when employees members take unauthorized time without work with out utilizing PTO or paid sick depart. No matter whether or not staff deliberately or unintentionally do that, stealing time usually straight violates firm insurance policies, and generally even time theft legal guidelines. Whereas this will result in inner self-discipline, your online business additionally wants to make sure that you’re not violating any labor legal guidelines.

Sadly, time theft is a typical actuality that enterprise house owners should cope with and attempt to forestall as a lot as potential. Whereas most staff adjust to your online business processes, there are people who will reap the benefits of any flaws in your time monitoring system and use them to receives a commission for extra hours than they earned.

A biometric time clock might forestall some employers from stealing time, however they aren’t authorized in each state. Alternatively, guide timesheets and punch clocks make it straightforward for individuals to commit time theft as a result of staff could be dishonest when writing down their hours or buddy punch (punch out and in for one another).

One of the simplest ways to stop time theft is through the use of a web based time clock, such because the one supplied by Homebase. Homebase can assign a singular pin for every employees member and take a photograph each time they punch in, so there’s no approach for coworkers to clock out and in for one another. It even has a GPS time clock app function that, when enabled, prevents employees members from punching in till they’ve arrived on the location you set.

When employees clock in, they are prompted by Homebase to enter their personal pin. This prevents buddy punching.
Homebase provides every worker a private pin they’ve to make use of to clock out and in. This can assist forestall buddy punching and different types of time theft. Supply: Homebase

These options not solely forestall time theft, however they will additionally warn you if any staff miss their breaks, which may probably land your online business in authorized hassle.

3. Document on a regular basis labored

Any time your staff spend working for your online business must be recorded, whatever the location. In the event you make use of anybody that works remotely or has duties to carry out away out of your fundamental job website, it may be harder to trace once they punch out and in. 

Having a versatile time monitoring system is a simple resolution to this drawback. Moderately than counting on a guide timesheet or punch system, an app like Homebase simplifies the method. So long as you allow clocking out and in from different places, staff can document their time spent working from anyplace. That approach, you gained’t should manually regulate or document hours labored away out of your fundamental administrative center.

An image showing Homebase's GPS tracking feature, which allows employers to determine where you can and cannot clock in.
Homebase’s GPS time clock function lets employees clock in from anyplace, whilst you can set geofences to stop punches from unapproved places. Supply: Homebase

4. Spherical to the closest increment

A fast approach to get on the fallacious aspect of labor legal guidelines is to spherical time incorrectly or unfairly. When employers pay their staff in blocks of an hour or fraction of an hour slightly than minutes, they at all times must spherical to the closest increment. All the time rounding down can lead to a violation of labor legal guidelines since you’re primarily depriving employees of rightfully earned wages.

Widespread time clock rounding increments embrace rounding to the closest 5 or quarter-hour. Whenever you’re rounding to the closest quarter of an hour, comply with the 7-minute rule: minutes one via seven are rounded down, and minutes eight via fifteen are rounded up. Utilizing a web based device like Homebase to trace hours could make this course of simpler, because the software program will do the rounding for you.

5. Don’t ask staff to work off the clock

It’s best to by no means ask an worker to carry out any duties with out additionally requiring them to clock in. Not solely is that this unethical and unfair to your employees, nevertheless it’s additionally a critical violation of the Honest Labor Requirements Act (FLSA) and state legal guidelines.

Remind your staff that irrespective of how urgent a deadline is or how dedicated they’re to getting sure duties achieved, all work should be accomplished solely throughout frequently scheduled shifts or with prior approval of additional hours. If staff are accredited for unscheduled work, be sure that they aren’t approaching time beyond regulation hours except this has been accounted for in your funds.

6. Staff should get permission for time beyond regulation

As talked about within the earlier part, staff ought to at all times ask for prior approval earlier than working greater than 40 hours per week. Since time beyond regulation is often paid at 1.5x a employees member’s regular price, it could possibly shortly add up and have an effect on your funds. In the event you plan to permit any time beyond regulation work, define a transparent coverage and talk it to your employees. Unplanned time beyond regulation work shouldn’t be a typical apply.

In the event you’re struggling to observe which staff are constantly coming near time beyond regulation pay, you should utilize Homebase’s time clock to ship you an computerized alert.  It will enable you keep away from by accident overscheduling particular person employees members who’re nearing 40 hours in a working week.

Widespread time clock rule violations

Whereas following the time clock guidelines and finest practices listed above might sound easy, many employers violate them with out even realizing it. Along with making a tough work atmosphere for workers, these points can spell authorized hassle for your online business. A number of widespread time clock rule violations embrace:

  • Mandating that non-exempt or hourly staff clear up the office earlier than clocking in for his or her shift or after clocking out 
  • Requiring staff to clock out earlier than finishing unfinished duties that weren’t accomplished throughout the workday 
  • Scheduling necessary conferences throughout designated lunch breaks 
  • Instructing staff to clock out when work is quickly unavailable, reminiscent of between the lunch and dinner rush at a restaurant 
  • Ceaselessly contacting staff exterior of working hours to ask non-urgent questions 
  • Requiring staff to be on-call (in components of the US the place it’s unlawful) 
  • Not following particular restaurant legal guidelines and rules when you function within the meals service trade

To make sure your online business doesn’t violate any time clock guidelines, merely keep in mind that if an worker is actively engaged on a process for your online business, they have to be clocking in and compensated for his or her time. That is no matter the kind of work, time of day, and the variety of prospects you’re serving at any given time.

Choosing the proper time clock app in your workforce

Whereas it might look like there are limitless potential time clock violations, most of them could be summarized as merely monitoring and paying your staff accurately and pretty. This implies having techniques in place for each managers and employees to document correct punches and guarantee no time theft is dedicated.

In the end, most groups are capable of comply with time clock guidelines and keep away from widespread violations when the enterprise they work for implements a easy and environment friendly time clock system. Homebase’s time clock has all of those features and extra. It’s straightforward to make use of, constructed for small companies, and designed particularly for hourly work. 

With its intuitive options, Homebase can assist companies with hourly employees and non-exempt staff keep on high of time clock guidelines. Plus, in contrast to many different choices available on the market, it’s free! Homebase can assist your small enterprise cease worrying about time clock guidelines and as a substitute focus in your prospects and rising your online business.