Exempt salaried employees aren’t eligible for overtime pay-and, as such, there’s no need to track their hours. When it comes to salaried employees, you may or may not need to track their hours it all depends on whether they’re exempt or non-exempt. But where business owners sometimes get confused is when it comes to salaried employees. If you have hourly employees, you absolutely need to track their hours.
Under the federal Fair Labor Standards Act (FLSA) and individual state labor laws, keeping records of your employees’ work hours is actually a legal requirement.īut what are the time clock rules for hourly employees? What information do you need to keep track of? How do you need to track that information? And what are you required to do with that information once you have it on record? Which employees’ hours do you need to track?įirst things first-before we jump into all-things time tracking, let’s quickly cover which employees’ time you actually need to track. Workers may be able to sue an employer for failing to pay regular or overtime wages, which may require employers to pay hefty fines, penalties, and any financial damages due to employees.Īny worker with concerns about OTC work or unpaid wages should discuss their legal options with an experienced attorney.From a business perspective, keeping track of when and how long your employees work is important you want to make sure they’re getting paid accurately for the hours they put in-and that you aren’t under or overpaying your team.īut keeping track of your hourly workers and non-exempt employees’ hours is more than just a good business practice. Working OTC is problematic for many reasons, including adversely affecting employees’ mental health and violating workers’ legal rights. In the legal context, when employees are not paid for OTC work, it can be grounds for a wage theft claim.
How OTC work can trigger wage and hour disputes enforcing state and federal rules for taking breaks.įailing to take these and other steps to eliminate OTC work can have costly consequences.limiting access to systems to prevent use during off-hours or.improving communication between employees and managers to make it easier for workers to bring up time management concerns.implementing and understanding policies against working OTC.updating reporting systems to be easier and more accurate.Thus, employers and employees alike can benefit from stopping OTC work. For instance, working OTC can lead to increased employee burnout, unrealistic production expectations, and improper staffing levels. Minimizing or eliminating OTC work is crucial for many reasons. Whether these actions are the result of bad habits, poor oversight, or unlawful work policies, working OTC means that workers are performing job duties without compensation. checking emails or completing work duties during off-hours.attending trainings or work events, in some cases or.performing job tasks before clocking in or after clocking out.What is off-the-clock work?ĭepending on the type of work arrangement a non-exempt employee has, working OTC can involve: However, this practice could trigger costly legal disputes. Although employees generally do not want to work off the clock (“OTC”) without proper compensation, many employees are obliged to do so in order to perform their duties adequately or because their employer has expressly required them to work OTC.
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