How Does a Time Clock Help You Comply with Labor Laws in Your State

There are over 180 federal laws concerning labor in the United States administered by the Department of Labor. It can be difficult for employers to comply with multiple labor laws and continually update their data to match governmental standards.

Organizations decide to introduce time-tracking software for employees to ensure accuracy and efficiency. It lets them comply with local, state, and central labor laws too.

Besides ensuring labor law compliance and recording your employees’ time spent on work, expense tracking is another great function for time-tracking software. It can let you observe how much money is being spent on personnel and where you can save costs.

Implementing time-tracking software is essential for organizations that employ many freelancers or remote workers. Many states require organizations to pay for when an employee is available for on-call services. You can see if an employee is available for on-call services with the help of a time clock.

Benefits of Using a Time Tracking Clock for Your Employees

Using time-tracking software has multiple advantages for your organization like:

Managing the time and attendance of multiple employees, whether they’re working remotely or off-site, also becomes easier when the time-tracking software you’re using reports accurate real-time data.

When you have multiple offices or branches, having time-tracking software can ensure streamlined data for all locations while ensuring that the hours and pay adhere to local and state labor laws.

Accurate Payroll Reporting

Since your employees will be automatically checking in and checking out through the software, there is less room for human error when it comes to payroll reporting. The software automatically calculates minimum hourly wages and different deductions without any human involvement.

The Fair Labor Standards Act also allows employers to round the time that employees have worked, which is done automatically with time-tracking software.

Having accurate payroll reporting is crucial if your organization employs many people who work off-site or remotely, as it ensures that you are not paying more than you should.

It is estimated that employers lose 7% of their payroll budget due to inaccurate reporting and management of payroll sheets which is easily preventable through time-tracking software.

Scheduled Breaks

Utilizing a time clock app for your organization will also let you organize and customize breaks according to effective labor laws in your area and give well-timed relaxation time for your employees.

You can schedule break entries for different departments depending on labor law compliance and your business hours. There are no deductions made when your employees mark their breaks on the software.

When your employees are aware that their breaks are recorded and monitored on software, they become accountable if they are found taking unscheduled breaks. They will become less likely to procrastinate and take unscheduled breaks with the help of a time clock.


If you have multiple branches of your business in different states, you are required to comply with different overtime pay. Using a time clock, you don’t need to worry about manually inputting overtime rates and hours, as the software will handle it for you.

You can correctly implement the proper overtime policies according to your organization’s values and labor laws. This will show on timesheets that are generated by time-tracking software.

Time-tracking Software for Better Management of Your Employees

Using the right time-tracking software for your organization will increase the efficiency and productivity of your employees. It will organize your timesheets for you automatically and generate reports that will give you quick insights and data on your employees.

You can address absence or attendance problems with your employees when you have concrete data and insights into the abuse of such privileges. It also streamlines data for your HR department, so they spend less time and effort on timekeeping tasks.

With timesheets and other data that are available on your time clock stored permanently on the cloud, you can access the information anytime from anywhere. Ensure complete transparency to garner trust between your employees and you with time-tracking software.

The ideal time-tracking software will go a long way in ensuring that your employees have boosted morale as they are confident that they will be paid fairly for the number of hours they work.

Utilize time-tracking software today to ensure complete labor law compliance and maintain complete, accurate records as an employer. This will also enhance productivity at your workplace with better time tracking and management.

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