Ensure Compliance With Workyard's Time Tracking App
In this article, we’ll cover the different ways of tracking employee hours, the benefits of each, and the legal responsibility you have as a business owner to accurately track time.
To stay profitable, productive, and legally compliant, you must accurately track time in a way that benefits your business. From physical timesheets to hour-tracking apps, there are many ways to track employee hours.
In this article, we’ll uncover a few, plus dive deep into the benefits of tracking employee hours using various hour-tracking apps. You’ll also learn about the legal responsibility you have as a business owner to accurately track time.
There are several ways to track employee hours, these four being the most common.
An employee hour tracking app, or time tracking app, is a mobile app that allows employees to accurately track their hours using the device in their pockets. From any smartphone, they can effortlessly track billable hours, meal breaks, overtime, and more. With the right employee hour tracker, they can even track driving routes, travel time, and mileage. Best of all, they won’t need to carry around a physical timesheet or extra device to do so.
Time tracking devices are often simple, interactive cubes used to track billable hours. Time tracking devices also include physical time clocks, or punch clocks, commonly used in construction. Similarly to timesheets, time-tracking devices come with a host of pros and cons.
Biometric time clocks require employees to clock in and out of work using facial, fingerprint, or palm recognition technology. When it comes to tracking employee hours, this is the most accurate method. Biometric time clocks, however, can raise serious safety concerns for some employees.
Excel timesheets are often used by employees to keep track of time using pen and paper. Workers can easily add their hours for each day to a timesheet, and submit it for approval at the end of each week. While it sounds pretty simple in theory, there are some problems with using timesheets to track employee hours.
If you have employees stationed in the field or workers who bounce between job sites, we encourage you to look for the following features when evaluating time-tracking apps:
With this feature, you’ll always know who is on the clock, where they’re at, and what they’re working on.
If you’re tracking time spent driving, look for an app that tracks mileage and travel time to streamline expense reporting.
Let’s face it, not all employees are going to remember to clock in. That’s why employee hour trackers with geofencing capabilities are great. Once set up, geofences automatically detect when an employee arrives on-site to ensure they get paid for every hour worked.
To help with compliance, look for an employee hour tracking app that can send break reminders to an employee’s mobile phone.
Make sure your chosen app is compatible with your existing systems and processes. This could include payroll software, scheduling software, or other HR systems used for tracking employee time.
If you want to ensure buy-in and adoption from your team, look for a time-tracking tool that’s easy for employees to use and understand. If you’re worried about the implementation process, partner with a company that offers good customer support, such as online resources, phone support, or email assistance. This can be particularly beneficial if you encounter any issues or have questions while using the app.
At Workyard, we understand that no two businesses are the same. Here’s a simple breakdown of features to look for based on the type of business you run.
Without the right app or software, tracking time and labor can be a long and tedious process. Thankfully, these time clock apps exist to make time tracking easy.
Workyard offers the best employee time-tracking app for construction and field services companies. Its precise GPS time tracking software helps users create accurate timesheets that keep businesses compliant and profitable.
QuickBooks Time is the best employee hour tracker for small businesses with a single location, such as a retail store. It’s great for time tracking, payroll, and getting the insights you need for growth.
DeskTime is the best all-in-one hour tracker for knowledge workers. It’s designed for everyone, from in-house managers to remote employees, and is suitable for small and large businesses.
For a more in-depth comparison of time-tracking apps and software, check out our article on the best time clock apps for small businesses in 2023.
Some key benefits include payroll accuracy, improved productivity, and precise project planning. With an employee hour tracking app, employees can easily track their hours from anywhere, eliminating the need to be physically present at a time clock or office. Most importantly, hour-tracking apps with GPS ensure that employees are paid accurately and on time, in addition to the following benefits:
Collecting individual time cards from employees and punching their data into a payroll system takes time, especially if you have hundreds of employees. Thankfully, employee hour tracking apps eliminate the need for manual data entry, thus saving you time on admin.
With various spreadsheets to keep track of, workers are less likely to maintain an accurate record of their hours. By giving them one place to record and track their hours, they’re going to get paid for the work they complete.
In order to plan for future projects, you need to understand where time was spent in the past. Thankfully, hour-tracking apps show you exactly where time and money is spent on each project so that you can improve estimates and profits over time.
Accurate time tracking can help you identify patterns and trends in employee productivity and understand where improvements need to be made. Thus helping you stay profitable.
By tracking hours accurately, employers can make more informed decisions, such as identifying when additional employees may be needed to meet project goals. Thus helping you stay on track and maintain healthy client relationships.
By improving transparency for both you and your clients, you’re able to share an exact breakdown of the hours you’re billing for. Thus improving payroll accuracy and client satisfaction.
At the end of each pay cycle, the last thing you want to do is reimburse an employee who wasn’t paid correctly. Minimize mistakes and get it right the first time with hour-tracking apps and software.
By tracking hours accurately, employers can rest assured their employees are paid for the work they complete, plus any overtime, breaks, or rest periods. Thus helping you comply with labor laws and regulations.
Accurate time tracking is important for a variety of reasons. For example:
In the United States, the main labor law that regulates the tracking of employee hours is the Fair Labor Standards Act (FLSA). The FLSA sets standards for minimum wage, overtime pay, and child labor, and applies to most employees in the U.S.
Here are some specific provisions:
Minimum wage: The FLSA requires that employers pay employees at least the federal minimum wage of $7.25 per hour (as of 2021). Some states and localities may have higher minimum wage rates that apply to employees in those jurisdictions
Overtime pay: The FLSA requires that employers pay employees time and a half for all hours worked beyond 40 hours per week for non-exempt workers. However, some employees may be exempt from overtime pay requirements due to their job duties or job classification. Here’s a quick summary of how to calculate overtime pay.
Note: Certain states have different overtime requirements. For example, the California overtime law states that employers must pay employers twice their rate of pay if they work more than eight hours for seven consecutive work days.
Breaks and rest periods: The FLSA does not require employers to provide breaks or rest periods to employees, but if they do, any such breaks that last 20 minutes or less must be paid.
Note: Certain states have different laws requiring meal and rest breaks. For example, in California, employees are entitled to a 10-minute paid rest break every four hours.
In addition to the FLSA, there may be other state and local laws that regulate the tracking of employee hours. You need to familiarize yourself with the labor laws that apply to your industry and location to ensure compliance.
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This article lists the top nine time tracking devices for small companies in the U.S.
We interviewed and worked with thousands of contractors to learn what they thought were the top construction time tracking app features in 2022.
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