Which employees need to track their time?

Non-exempt (hourly) employees almost always must record time to comply with wage laws and support overtime calculations. Exempt salaried staff may be excused, though some employers track their time for project costing or leave management. The policy should state exactly who is covered.

How do we prevent time theft and buddy punching?

Use timekeeping methods that verify identity, such as biometric or individual PIN logins, and prohibit clocking in on another person's behalf. Reconcile time records against schedules and system logs, and treat falsification as a disciplinary matter clearly stated in the policy.

What should happen when a timesheet has an error?

Provide a documented correction process where the employee flags the mistake and a manager reviews and approves the adjustment. Keep a record of the change and the reason. Prompt, transparent corrections protect both accurate pay and the integrity of the audit trail.

Timekeeping Policy

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Company Name

Effective Date

Policy Owner

Approved By

Time Management System

Timekeeping Policy

Timekeeping Policy

Company Name: 
Effective Date: 
Policy Owner: 
Approved By: 
Time Management System: 

PURPOSE & SCOPE
- This policy establishes procedures for accurately recording work hours, approving timesheets, and addressing discrepancies in attendance and time records.
- This policy applies to all employees who are required to record their working hours in the Organization's time management system.

TIME RECORDING REQUIREMENTS
- Employees shall record their actual start time, end time, break periods, and any overtime or leave taken on each working day in the Organization's time management system.
- Timesheets shall be submitted weekly by close of business on the last working day of the week. Managers shall review and approve timesheets within 2 business days of submission.

CORRECTIONS, DISCREPANCIES & COMPLIANCE
- Time record corrections shall be submitted through the time management system with a written explanation and are subject to manager and HR approval.
- Falsification of time records, including recording hours not worked, clocking in for another employee, or manipulating overtime entries, is considered gross misconduct.

POLICY REVIEW
- This policy shall be reviewed annually and updated to reflect changes in working time legislation, payroll systems, and organizational timekeeping practices.

The complete guide

Everything you need to know

01What Is a Timekeeping Policy?

A timekeeping policy sets out how employees record the hours they work, including clock-in and clock-out procedures, break logging, and the tools used to capture time. It defines who must track time, how records are submitted and approved, and how corrections are made. The goal is accurate, verifiable records that support correct pay and demonstrate compliance with wage and hour laws.

02Why Companies Need a Timekeeping Policy

Accurate time records are the foundation of correct payroll and a core legal requirement for non-exempt employees in many jurisdictions. A clear policy prevents disputes over hours worked, deters time theft and buddy punching, and creates an audit trail that protects the company during wage claims or inspections. It also gives managers reliable data for scheduling, project costing, and productivity analysis.

03What a Timekeeping Policy Should Include

State which employees must track time and the approved method, whether a digital system, badge, or timesheet. Explain rules for recording start times, breaks, and overtime, and prohibit falsifying records or clocking in for others. Set deadlines for submitting and approving timesheets, and a process for correcting errors. Note that off-the-clock work is not permitted, and outline the consequences for repeated inaccuracies or manipulation.