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How to Create a Clocking in and Out Policy for Your Business

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clocking in and out policy

How to Create a Clocking in and Out Policy for Your Business

Nearly 50% of businesses fail within five years of starting in the US. The good news is that vigilance goes a long way toward success. One of the most important attributes of running a successful business is proper employee management. More specifically, employee time tracking is something you can’t overlook. Every company should have a clocking in and out policy, but not everyone knows what information to include.

Let’s explore what you should keep in mind.

Eligible Employees

Not every worker at your company will need to consult this policy. For instance, most salaried employees don’t have to clock in or out since they receive their base pay regardless of the hours worked. Nonexempt salaried, hourly full-time, and hourly part-time employees are the primary focus of this type of policy.

This helps keep track of the money you owe them for the time they’ve spent working. Nonexempt salaried employees are special cases. They’re able to receive overtime pay, so you must track their hours to determine their overtime pay.

Overtime Calculations

You should include overtime rules in your policy. In general, employees are entitled to 1.5 times their normal pay rate if they work more than 40 hours in a single workweek. However, there are exceptions to this rule.

States like California calculate overtime pay more frequently. Be sure to check with local and state laws to ensure you don’t infringe on guidelines.

Disciplinary Action

It’s crucial to establish disciplinary action within the policy. Common issues that arise include time theft, unauthorized overtime, and neglect.

Some employees also clock in for their coworkers when the other individual is not present, a process known as “buddy punching.” All of these can substantially impact your company’s productivity, and it’s best to have a nonnegotiable stance on these scenarios.

Many companies employ a three-strike rule that results in the termination of employees. This occurs if they infringe upon these guidelines on three occasions within a certain time period.

Requirements For Recordkeeping

Keeping track of employee details will help minimize complications in the future. This includes information like their full name, Social Security number, job title, and regular pay rate.

You should also log their hours worked per day and total hours for each workweek. Depending on your situation, the information you archive could be different from that of another company in your industry. As long as you keep your records comprehensive, you shouldn’t encounter problems.

Employee Breaks

By federal law, breaks are compensable during work hours. Some states also require that employers provide paid breaks at least once every four work hours.

When it comes to meal breaks, these are often unpaid. Regardless of how you incorporate breaks into your policy, research applicable laws so you can avoid complications.

Develop a Clocking in and Out Policy

Without a proper clocking in and out policy, you run the risk of lower productivity and time theft. You could encounter additional issues if your employees break your overtime rules. As long as you take this obligation seriously, you’ll have no trouble getting the best results.

Start your free trial of TimeTrakGO today. Our professional team is ready to help guide you through the process.