Reducing Wage Theft and Buddy Punching for Construction and Trades Businesses

Wage theft and buddy punching cost money, slow down payroll, and create friction between the field and the office. These issues show up most on mobile jobsites where crews move often, supervisors can’t verify every arrival, and paper or basic tools leave too much room for error.

So, how do you reduce wage theft and buddy punching? It starts with clear rules, reliable verification, and simple routines that crews can follow every day.

In this article, we’ll talk about ways to prevent wage theft and buddy punching in construction.

Key takeaways

• Time fraud happens when hours aren’t tied to real job-site activity.
• Verification tools and clear policies are the strongest way to prevent it.
• Regular reviews catch issues early and protect labor budgets.
• Training keeps crews aligned with expectations on every jobsite.

What wage theft and buddy punching mean in construction

Wage theft happens when reported hours don’t match actual work. Common examples include early clock-ins, padded time, long breaks recorded as paid hours, or hours added after the fact.

Buddy punching is when one worker clocks in or out for someone else. It’s one of the most common forms of time fraud on construction jobsites.

Both issues lead to payroll corrections, higher labor costs, and prevent accounting from trusting the hours they receive.

Why time theft happens on jobsites

Time fraud in construction usually comes from a mix of mobility, limited supervision, and loose processes. Common causes include:

• Clock-ins from off-site
• Crews starting early or finishing late without documentation
• Paper cards completed from memory
• Missed job switches when moving between sites
• Shared logins or unverified mobile clock-ins
• Inconsistent enforcement of timekeeping rules

When these issues pile up across multiple crews and jobsites, payroll and job costing both take the hit.

8 Effective ways to prevent wage theft and buddy punching in construction

Below are practical methods that contractors use to keep time records accurate without slowing down field work.

1. Implement digital time tracking with GPS and geofencing

Digital time tracking gives contractors reliable proof of attendance. A GPS time clock app records where workers clock in and out, and geofencing creates a virtual boundary around each job site. Workers can only record time when physically inside that area, which stops off-site clock-ins and reduces buddy punching.

How a digital clock-in works:

1. Employee arrives at the jobsite
2. GPS confirms the device location
3. The geofence verifies that the worker is inside the boundary
4. The app captures the time entry and location
5. Supervisors review time data in real time

These tools close common loopholes found in paper cards, such as shared logins or clock-ins completed from memory. They also support accurate project costing across mobile crews.

2. Use biometric systems to verify employee identity

Biometric systems verify identity through a fingerprint time clock or facial recognition. So it’s difficult for anyone to clock in for another coworker. Because each punch is tied to a unique biological marker, these tools significantly reduce construction time theft. Research shows biometric verification lowers payroll disputes by 27% and increases productivity by 15%.

Meanwhile, dedicated biometric hardware is accurate but can be expensive to place at multiple sites. For most field teams, a GPS-enabled smartphone app with photo or facial matching provides similar protection at a far lower cost.

The comparison below shows the practical differences between the two approaches:

3. Establish clear attendance and anti-time theft policies

Written policies set expectations and make enforcement straightforward. Every contractor should outline rules for time tracking, attendance, wage theft, buddy punching, and other forms of time clock fraud, such as off-site punches or shared logins.

What is time theft?

Time theft is the deliberate falsification of work hours or attendance, such as leaving early, recording hours not worked, or clocking in for someone else.

Policy essentials:

• Prohibited behaviors (buddy punching, off-site punches)
• Verification requirements (GPS, geofencing, photo checks)
• Consequences for falsifying time
• How to report problems or errors

Clear policies reduce disputes and give supervisors a consistent standard to enforce.

Workyard supports accurate timekeeping with verifiable data.

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4. Strengthen employee engagement and a positive work culture

Monitoring alone doesn’t stop time theft. Crews are more likely to follow rules when communication is open and expectations are clear. Regular check-ins and transparent feedback help build trust, which lowers the chances of falsified hours.

A positive work culture includes:

• Fair treatment
• Recognition of dependable attendance
• Clear reporting channels
• Access to training and support

These practices improve employee engagement and construction workforce productivity.

5. Use surveillance and monitoring to deter fraud

Light monitoring reinforces timekeeping accuracy and gives managers clear audit trails. Cameras placed near entry points, for example, can confirm who actually arrives on-site. Also, timesheet reporting tools help flag duplicate or suspicious entries automatically.

Monitoring options:

• Cameras at job site entrances
• Automated alerts for overlapping punches
• Supervisor spot checks
• Weekly audits of digital time records

Did you know?

Even small discrepancies add up. A daily 15-minute overstatement from a worker earning $15 an hour costs about $2,300 a year, and the impact multiplies quickly across crews, another reason early detection matters.

6. Monitor overtime and unusual time patterns

Overtime and irregular time patterns often reveal timekeeping issues. Reviewing hours weekly helps supervisors identify discrepancies before payroll is processed.

Red flags include:

• Unexplained overtime spikes
• Frequent missed punches
• Duplicate or overlapping clock-ins
• Time entries are inconsistent with job demands

Using alerts or approval workflows makes it easier to detect wage theft and helps control jobsite labor costs.

7. Integrate time tracking with payroll systems for accuracy

Linking time tracking with payroll eliminates manual data entry errors and keeps records clean. Integrated systems automatically apply wage rates, overtime rules, and verified hours.

Integration benefits:

• Real-time data transfer
• Fewer manual edits
• Accurate wage calculations
• Unified records for compliance and reporting

When labor data flows directly to payroll, contractors reduce disputes and maintain consistent audit-ready documentation.

Workyard integrates with payroll platforms to keep wage calculations accurate and audit-ready.

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8. Provide regular training on timekeeping and compliance

Training helps crews understand how to track time correctly and why accuracy matters. Orientation regarding new apps, for example, is important and should include:

• how apps work,
• when to verify identity, and
• how to fix mistakes.

Supervisor training matters as well. They should know how to spot irregularities, review time logs, and reinforce policies.

Here’s a training checklist:

• How to clock in correctly
• How GPS and photo verification work
• When to switch jobs or tasks
• What to flag as non-compliant
• How to report concerns
• How to review and approve timesheets

Regular refreshers keep everyone aligned and reduce preventable errors.

Final Thoughts

Preventing wage theft and buddy punching comes down to accurate verification and clear expectations. Digital tools give contractors reliable proof of who clocked in, where, and when, while consistent policies and training keep crews aligned.

Workyard supports this approach by capturing GPS-verified hours, applying the right rates and rules, and syncing time directly to payroll. With dependable records and fewer manual fixes, supervisors spend less time chasing errors and more time running the job.