Time Theft: Why (and How) Your Employees Do It and How to Stop It For Good

According to a recent study published in the Journal of Behavioral and Applied Management, the top ways employees waste time include excessive use of personal internet during work hours, using social media, and altering logs to appear more productive than they really are. 

Construction employers and admins can combat time theft by employing solutions such as construction time tracking software, clock-in/out verification, and live site supervision. 

Let’s take a closer look at why and how time theft occurs, and how to reduce time theft on construction sites.  

Key takeaways

• Common construction time theft: buddy punching, job-switch padding, rounding, late starts/early leaves, and mis-coded cost/job time.
  
• Fixes that work on jobsites: real-time GPS timestamps, mandatory job switches, daily reviews, and travel-time logging.
  
• Use tools built for the field: time tracking, log verification, offline use, GPS breadcrumbs, and job-switch reminders.
  
• Onboard crew regarding time tracking solution and privacy policy

What is time theft in construction?

Time theft happens when an employee gets paid for time they did not spend working. It’s also called time fraud, buddy punching, and time card fraud. 

Stealing time at work is a type of payroll fraud. Unworked time gets credited to an employee and compensated at the expense of their employer. At the end of a year, idle minutes and hours can accumulate into days of inflated labor costs. 

Often, time theft is no secret in construction workplaces. A lot of managers and employers are aware that workers are stealing time.  Even so, time theft in construction is notoriously hard to control using traditional methods such as paper timesheets and time cards, especially with multiple teams working on multiple sites. Workers can usually find a way to exploit such systems to commit time fraud. 

Types of time theft on construction sites

Time theft on jobsites happens when hours are reported that don’t match real work performed. Below are the most common forms of time theft specific to construction crews.

Buddy punching

Employees ask  co-workers to clock in or out for them when they are running late. 

Example: Foreman runs a sign-in at a trailer; a late laborer asks a buddy to tap for them.

Job-switch padding

Worker stays on Job A in the n the system even though they moved to Job B or split work across multiple sites.

Example: Electrician moves between two small sites in a day but forgets to switch the job code for the second location.

Extended or unscheduled breaks

Crew members take longer breaks than allowed or add extra breaks throughout the day.

Example: A team takes multiple 20-minute smoke breaks between lifts, stretching the day beyond approved break time.

Rounding and padding

Workers round start/end times or add minutes to simplify time entry or gain extra pay.

Example: Logging 7:55 as 8:00 or rounding out 10–30 extra minutes across the day.

Late starts or early departures

Worker arrives late or leaves early but reports hours as a full day’s work.

Example: A laborer leaves early without notifying a supervisor but submits hours for a full day.

Process leakage (mis-coded time)

This issue is often unintentional. Hours land on the wrong job or cost code due to unclear workflows or rushed entries.

Example: Hours logged to “general” instead of the intended cost code like “foundation — rebar.”

Why time theft happens in construction

Time theft often occurs because jobsite workflows, expectations, and tools leave room for hours to drift away from what was actually worked. In many cases, the issue comes from inconsistent practices, unclear rules, or gaps in daily oversight.

However, it’s also about poor tools and field realities, not just dishonesty. These include: 

• Multiple sites per crew, same day movement, and no quick job-switch workflow.
• Paper sign-in sheets and memory-based time reporting.
• Poor or no GPS verification on a mobile app.
• Confusing or unstated rules about travel time, breaks, and overtime.
• Lack of daily review by PMs or foremen.

The cost of time theft for contractors

Time theft directly inflates payroll and destroys job costing accuracy. Impacts include:

• Payroll waste and overtime: Rounded minutes add up to real dollars.
  
• Job costing errors: Labor is misallocated, so budgets and forecasts are wrong.
  
• Labor burn and profitability: Hidden hours mask productivity problems.
  
• Travel disputes: Disagreements about drive time waste admin hours.
  

AV Decking Case Study

AV Decking’s story is one example of how time theft can add up. The company struggled with a paper-based time tracking system which was open to time theft and inaccuracies.

Admin assistant April Callaway shares, “We estimated time cards could be off by 30 minutes daily for every employee, and we had and multiplied it for the entire week. We figured that if every person was off by an average of 30 minutes a day, every day, all week long, it came pretty close to $47,000 in payroll loss a week. That’s just for 30 minutes. We know that not everybody works 10 hours a day, sometimes you’re working five hours, sometimes you’re working 10 hours, but most of the time, you’re not really working what’s reported.”

AV Decking decided to try a time tracking system that would solve their problems – in this case, Workyard. “We’ve had at least a solid six weeks now with all of our guys fully on the app, and in six weeks, we actually over exceeded that $150,000 [in payroll savings] that we had originally estimated for an entire year.”

Read AV Decking’s entire case study here

Time theft and inaccuracies not only cost construction businesses in dollars but also in employee morale. 

Your number one asset in your construction business is your crew. When time theft goes unchecked, honest workers feel demotivated as their efforts are equated with dishonest behavior. A work environment with inconsistent time reporting allows laziness to spread and hard work to lose value.

Most importantly, time theft erodes trust between employers and employees, which is the basis for a healthy work environment. Fixing these issues supports accountability and clearer expectations across crews. 

How to reduce time theft on construction sites

As in most cases, prevention is better than cure. Stopping time theft before it starts means being proactive in identifying and stopping up loopholes. Here are steps you can take to stop time theft in construction: 

Step 1: Require GPS timestamps for every clock in/out

Enforce exact arrival/departure times (not geofence approximations). Using GPS breadcrumb trails helps confirm multi-site movement. Workyard captures real-time GPS location data and exact timestamps to resolve travel and attendance disputes.

Step 2: Adopt short, clear jobsite time policies

What to include:

• Start/stop rules and punctuality expectations
  
• Break length and allowed frequency
  
• Travel time policy (paid/unpaid, how recorded)
  
• Job-switch procedure and consequences for edits
  

Keep policies on one page. Post in construction jobsites and add to worker onboarding.

Step 3: Onboard crews on fair use and privacy policies

Explain why accurate time equals better bids, safer schedules, and fewer disputes. Address privacy concerts and use toolbox talks to show how the app records travel and job switches.

Step 4: Enforce job and cost-code switching on the clock

Make job selection mandatory before hours save. You can also use job-switch reminders when location changes or after X minutes. Require supervisor override for retroactive job-code edits.

Step 5: Track travel time automatically

Record drive time as separate pay or cost code if you bill or pay travel time. Use travel time tracking construction apps to settle drive time disputes quickly.

Step 6: Review timesheets daily or mid-week

Have project managers or foremen sign off by Wednesday for week-end payroll. Use GPS-backed timestamps to speed approval and spot anomalies.

Step 7: Audit and escalate

Flag repeated mismatches for coaching. However, reserve disciplinary action for willful abuse after warnings.

Implementation Table 

Problem on site	Best fix	Why it works
Buddy punching	GPS timestamp + photo check-in	Prevents one worker from clocking in for another; identity is verified at clock-in.
Job mis-coding	Mandatory job switch with reminders	Prevents hours landing on wrong cost code
Rounding/padding	Exact timestamps for audit trail	Removes subjective rounding choices
Travel disputes	Auto travel logging (GPS breadcrumbs)	Shows route and duration for accurate reimbursement

When to use GPS vs geofence vs photo check-in

Real-time GPS tracking is ideal for managing crews that work across and travel between multiple sites. For teams based at a single, fixed site, geofencing provides a reliable way to automatically track employees’ entry or departure from project sites. Lastly, photo check-in adds an extra layer of security by verifying employee identity at entry points, which helps prevent buddy punching in construction. 

Method	Accuracy	Best use case	Limitations
Real-Time GPS	Highest	Multi-site crews, travel tracking, job switching	Needs GPS-enabled app; drains device battery
Geofencing	Medium	Single fixed sites or gated yards	Not precise for on-road travel; entry/exit timestamp approximate
Photo Check-In	High (with verification)	High-security sites or substations	Slower, requires compliance and photo review

Note: Workyard uses real-time GPS, not geofences, for travel and multi-site accuracy.

Construction time theft vs process leakage

Construction time theft is intentional and involves deliberate acts such as buddy punching and falsifying timesheets. On the other hand, process leakage happens accidentally, often due to inefficient workflows or errors.

• Time theft directly inflates payroll costs and undermines trust. To prevent it, admins need to require strict accountability and enforcement.
  
• Leakage or process problems include mis-coded hours, paper mistakes, and offline sync gaps. Leakage leads to unintentional losses that admins can reduce with workflow optimization and real-time tracking systems. 

Construction time tracking glossary 

Here are quick definitions you’ll need when fixing time theft:

• GPS timestamp: Exact arrival/departure time with coordinates.
• Job code or cost code: The project/task identifier labor hours are billed to.
• Travel time: Time spent moving between jobs; often a separate cost code.
• Audit trail: Immutable record of punches, edits, and who made them.
• Job-switch reminder: App prompt to change job code when location or task changes.
• Certified payroll: Compliance terms tied to payroll records on public jobs.
  

How Workyard helps reduce time theft

Workyard is the GPS time-tracking platform built for construction and field service companies with crews spread across multiple jobsites. It captures exact entry and exit times, travel routes, and job switches using real-time GPS, without relying on geofencing. Crews get a simple, reliable app that works offline; the office gets accurate hours for payroll, job costing, and billing.

Here are construction-specific GPS tracking benefits you can expect from Workyard:

• Accurate GPS tracking records exact entry, exit, and shift times.
  
  
• Geofence reminders help workers clock in at the right site, but hours are always recorded with real-time GPS.
  
  
• Mileage tracking automatically records travel distance for reimbursement and job costing.
  
  
• Payroll automation sends verified hours directly to payroll systems.
  
  
• Smart alerts flag possible time card errors or unusual activity.
  
  
• Meal and break management sends required reminders for compliance.
  
  
• Real-time jobsite tracking logs precise arrival and departure events.
  
  
• Continuous GPS tracking records travel, mileage, and movement daily.
  
  
• Compliance questionnaires at clock-out confirm required policies were followed.
  
  

Workyard vs common alternatives

App	GPS accuracy	Offline mode	Job costing	Job-switch reminders	Travel tracking
Workyard	High-accuracy GPS time tracking for construction	✅	Live job costing	✅	Automatic
				Clock-in/out reminders on entry/exit
ExakTime	GeoTrakker breadcrumb tracking	✅	Job costing available	✅	GPS enabled
				Project-based tracking allows employees to easily switch between different jobs
ClockShark	GPS tracking with live map view	✅	Job costing available	✅	GPS enabled
				Employees receive reminders to “switch tasks or clock out when they leave” via geofence-based notifications
BusyBusy	GPS breadcrumbing	✅	Job costing available	✅	GPS routes
				geofence-based reminders for job switching
BuddyPunch	GPS time clock	❌	Job costing available	❌	GPS routes
				Geofence Alerts notify admins / employees when a worker enters/exits a geofence, but not for job switches or clock-in/out

Workyard helps you stop time theft for good with its highly accurate time tracking app. Made for field crews and construction, Workyard brings precise GPS timestamps, automatic mileage tracking, smart alerts, and real-time job site attendance to your workforce supervision. Start running error-free payroll and job costing minus the manual effort (and mistakes) today. 

See how Workyard’s GPS time clock stops time theft in your construction business, or sign up for a 14-day free trial today!