Simplify HR Compliance with Employee Time Clock Software

Simplify HR Compliance with Employee Time Clock Software

Compliance employee time clock software

Employee time clock software does a number of critical things for employers, from reducing overtime and labor expenses to cutting hours from the payroll run-around each period. One of the most important but often unnoticed benefits of time and attendance is employer compliance. More specifically, time clock software is one of the absolute best tools to avoid wage and hour compliance risk for federal, state and local jurisdictions, as localities often carry their own minimum wage and other compliance ordinances.

The Growing Challenge of Wage and Hour Compliance

Wage and hour compliance can carry significant financial consequences for business owners, whether large or small. Today, employers may feel as though compliance is a moving target… and that perhaps they themselves are a growing target for an audit and penalties. Whether it’s FMLA, OSHA, ACA or the “next thing” the Department of Labor decides to introduce, compliance is growing in complexity. For this reason, the value and protection offered by automated employee time clock software is only increasing.

It is well publicized that wage and hour investigations, audits and employee grievances are on the rise. The Department of Labor is increasing its investment and enforcement in these areas. Need evidence? Simply visit the DOL website to find a list of the latest wage and hour violations and penalties, a list that includes even some of your household national brands.

The Solution, Part One – Awareness 

In simple terms, the solution could be simplified into two main steps. The first step is ensuring the proper awareness of compliance guidelines, both as a company and among managers. We acknowledge these guidelines can change throughout the year. Fortunately, there are a number of valuable services and tools to help employers manage this.

As an example, you can access an “HR Support Center” very economically today as your HR support go-to library. This way, you’ll stay up to date with existing and new legislation. This online resource offers an extensive library of HR Q&A’s, compliance details by state, policy support, and much more. This way, the challenge of cost-effectively staying aware of HR updates and compliance is manageable.

The Solution, Part Two – Automation

The second step to compliance is equally as important, which is an implementation plan to avoid risk. In most cases, that involves some automation through tools like employee time and attendance or time clock software. This way, time off, sick leave, overtime, rest and meal periods, and so on… can be easily tracked and verified. 

Simplifying Compliance

Addressing compliance risk from every angle is beyond the scope of a single write up. However, do not lose sight of one of the most effective solutions, which is a time and labor system. As an essential tool, it will simplify many of the most common issues.

Let’s review a brief list of how a time clock simplifies some of the compliance basics:

  • Recordkeeping – Employers are required to maintain accurate records of employee hours. Typically, employers should retain records related to wages for at least two years. This important task, however, is made very simple with employee time clock software. Also important, your organization will be much less vulnerable to a grievance or investigation. And finally, you will have ready-access to auditable records that can withstand an unsubstantiated claim.
  • Overtime Pay – Overtime is a common source of dispute and non-compliance for employers. Whether it be by intentional or unintended means, unpaid overtime poses a grave risk to employers. Automate overtime tracking and calculations with a timesheet solution.
  • Rest and Meal Periods – Another common source of contention and penalties is rest and meal periods. If not properly managed according to federal, state and local guidelines, the risk is significant and can escalate very quickly if reported. Implementing employee time clock software and ensuring your company policy is compliant solves the majority of this dilemma.


There are numerous forms of compliance employers must adhere to. Do yourself a big favor by subscribing to tools that keep you in the know relative to your obligations and by adopting systems that automate ongoing management. It’s one of the most important and convenient ways to stay clear of the heavy cost and time associated with non-compliance.