The 6 Best Labor Tracking Software Solutions for 2025

Labor tracking is the process of monitoring and recording employees’ work hours, tasks, and locations to ensure accurate payroll, productivity, and project management. This practice involves using software to log time entries, verify attendance, and analyze labor costs.

Labor software, often referred to as labor management software (LMS), is a digital tool designed to streamline and optimize workforce management processes. It encompasses a range of functionalities that help businesses manage their employees more efficiently, including:

Key Features of Labor Management Software

1. Time and Attendance Tracking: This feature captures employee clock-in/clock-out data, tracks hours worked, and monitors attendance. Some systems include geofencing to automate clocking in and out based on location

2. Scheduling and Shift Management: LMS allows managers to create optimized employee schedules based on forecasted demand and business needs.

3. Performance Management: Tools are provided to track employee performance, set goals, and offer feedback.

4. Labor Cost Management: This involves tracking and managing labor costs, including labor budgets, wage rates, and benefits.

5. Compliance Management: Ensures adherence to labor laws and regulations, such as overtime rules and minimum wage laws.

6. Workforce Planning and Forecasting: Helps predict labor demand and plan labor resources accordingly

Effective labor tracking helps businesses maintain compliance with labor laws, optimize resource allocation, and identify inefficiencies. It is especially crucial in industries like construction, where precise timekeeping and workforce management are essential for meeting project deadlines and staying within budget. Advanced labor tracking solutions often include features like GPS tracking, geofencing, and real-time reporting for enhanced oversight.

Labor tracking works by using software tools to monitor and record employees’ work hours, tasks, and locations. Employees clock in and out via mobile apps, web browsers, or biometric devices, capturing accurate time entries. GPS tracking and geofencing ensure employees are at the correct job sites.

The software automatically logs this data, calculates labor costs, and generates real-time reports. Managers can review and adjust time entries, monitor workforce distribution, and ensure compliance with labor laws. This streamlined process enhances productivity, reduces errors, and provides valuable insights for better resource allocation and project management.

The best labor tracking software with a free trial is Workyard. It offers a comprehensive suite of features designed to streamline workforce management and enhance productivity. With precise GPS time tracking, automated compliance, and easy-to-review timecards, Workyard ensures accurate labor tracking and efficient project management.

The platform’s intuitive interface makes it user-friendly, while its robust reporting capabilities provide valuable insights into labor costs and productivity. Additionally, Workyard integrates seamlessly with payroll systems. For businesses looking to optimize their labor tracking without incurring costs, Workyard is an excellent choice. Sign up for a free trial to experience its benefits firsthand.

Yes, it is generally legal to work 60 hours a week on a salary, but overtime pay requirements depend on whether the employee is exempt or non-exempt under the Fair Labor Standards Act (FLSA). Exempt employees are not entitled to overtime pay, while non-exempt employees must receive overtime compensation for hours worked beyond 40 per week.

Ohio is not classified as a right-to-work state. In non-right-to-work states like Ohio, employees covered by collective bargaining agreements can be required to pay union dues or fees as a condition of employment, even if they choose not to join the union.

The legal framework regarding union membership and dues payment in Ohio is primarily governed by state labor laws and collective bargaining agreements negotiated between employers and unions. These agreements outline the terms and conditions of employment, including union membership requirements and dues obligations.

The number of hours you can work on light duty depends on your employer, medical restrictions, and state labor laws. While federal law does not set a limit, your hours may be restricted based on doctor recommendations, workers’ compensation rules, or employer policies.

In a two-week pay period, overtime is not calculated based on weekly increments but rather on the cumulative hours worked over the entire two-week period.

To trigger overtime in a two-week pay period, an employee usually needs to work more than a total of 80 hours over the two weeks. It’s the total hours worked in the entire pay period that determines eligibility for overtime, not the hours worked in individual weeks.

Example: If an employee works 45 hours in the first week and 40 hours in the second week, totaling 85 hours over the two weeks, the 5 hours worked beyond the 80-hour threshold would qualify for overtime pay.

Per diem employees, also known as “as-needed” or “casual” employees, typically have flexible work arrangements without set schedules or guaranteed minimum hours. Per diem employees can work as many hours as the employer needs and they’re willing to accept, subject to company policy and applicable labor laws.

Hours are variable and as-needed (e.g., filling peak demand or covering absences), so a per diem worker might log a few hours one week and near full-time the next. The arrangement offers flexibility for both sides: employers can scale staffing without fixed schedules, and workers can choose availability.

Overtime rules still apply: if a non-exempt per diem employee works over the legal weekly threshold (often 40 hours), they’re typically entitled to overtime pay per law and policy. Always confirm your employer’s scheduling rules, overtime practices, and any limits tied to benefits or classification.

For FLSA-exempt salaried employees, pay generally doesn’t change—if they do any work in a workweek, they must receive their full salary even if they worked fewer than 40 hours. By contrast, salaried non-exempt employees are still paid based on hours worked (and get overtime over 40), so sub-40-hour weeks can reduce their pay.

Limited deductions from an exempt employee’s salary are allowed, such as full-day absences for personal reasons or sickness/disability when covered by a bona fide leave plan. Employers may require using PTO for partial-day absences instead of docking salary.

Because policies vary, review your handbook and talk with HR—especially if reduced hours will be ongoing—to align with company rules and applicable federal/state law.

A 1099 employee, also known as an independent contractor, does not have a set limit on work hours under federal law. Unlike traditional employees, independent contractors determine their own schedules, as long as they fulfill the terms of their contract. However, state-specific labor laws may impact how they bill for overtime or work-related benefits.

There’s no federal cap. Under the FLSA, salaried exempt employees can be required to work as many hours as needed to meet their job duties, and they don’t earn overtime. Hours are driven by role demands (common in executive, administrative, professional, and managerial jobs) and by any expectations set in your employment agreement or company policies.

While employers may set long hours, they should still manage workloads reasonably and comply with any applicable state rules (e.g., required meal/rest breaks). If hours are consistently unsustainable, discuss expectations with your manager and review your contract, handbook, and local laws to understand what’s required and what flexibility exists.