From the HR Support Center: Can We Require Exempt Employees to Clock In and Out?

From the HR Support Center: Can We Require Exempt Employees to Clock In and Out?

While it doesn’t violate the FLSA to have an exempt employee clock in and out, it is recommended to only track exempt hours if there is a business reason to do so.

There are some valid reasons for tracking exempt employee hours. For example, an employer may opt to track an exempt employee’s hours for purposes of client billing, grant tracking, Family Medical Leave Act (FMLA), 401(k), or hours-based benefits calculations such as vacation accrual. That said, exempt employees are paid to do a job, not necessarily to work a required number of hours. As a general rule, I recommend focusing on whether the job is getting done instead of attempting to track amount of time spent in the office.

While you may choose to track the hours of exempt employees, please ensure the information is not used to take deductions from an employee’s regular salary, unless such deductions are allowable under both state and federal law. An exempt employee’s salary should not fluctuate based on the number of hours worked within the workweek. Prorating an exempt employee’s salary based on hours worked may result in the loss of the exemption.

The HR Support Center is a service offered to Payroll Partners clients, and provides access to exclusive, industry-leading HR tools and resources, for just a few dollars a month. From employee handbooks, job descriptions and other commonly used HR documents, to up-to-the-minute law alerts, easy-to-understand state and federal law libraries, and unique training videos, the HR Support Center will help you effectively manage your HR compliance and employee relations needs.

Legal Disclaimer: Payroll Partners and/or the HR Support Center are not engaged in the practice of law. The content in this email should not be construed as legal advice, and does not create an attorney-client relationship. If you have legal questions concerning your situation or the information you have obtained, you should consult with a licensed attorney. Payroll Partners and/or the HR Support Center cannot be held legally accountable for actions related to this article.