You can track employee hours with paper timesheets, spreadsheets, time clocks, mobile apps, timer apps or automatic time tracking software. US law does not require a particular method, only that the records are complete and accurate. For teams that work on computers, automatic tracking is the most accurate method and takes the least effort.
Key takeaways
- The Fair Labor Standards Act sets what to record, not how.
- Payroll records must be kept for three years and time cards for two.
- All time worked must be paid, including time you did not authorize.
- Match the method to where the work happens: on site, in the field or on a computer.
What does US law require?
For non-exempt employees, the Fair Labor Standards Act requires records that include the hours worked each day and the total hours worked each workweek. The Department of Labor's guidance says employers may use any timekeeping method they choose, as long as it is complete and accurate. Payroll records must be kept for at least three years, and time cards and similar records for two.
One more rule shapes every method. Work that is not requested but is "suffered or permitted" is work time that must be paid. If your records show it, you owe it.
State law can add requirements, such as meal and rest break records.
What are the main ways to track employee hours?
| Method | How it works | Best for | Main weakness |
|---|---|---|---|
| Paper timesheets | Employees write down their hours | Very small teams | Errors and no audit trail |
| Spreadsheets | Hours typed into a shared sheet | Small offices | Manual and easy to change |
| Time clocks | Clock in and out at a terminal | Shift work on site | Shows presence, not what was done |
| Mobile apps | Clock in from a phone, often with location | Field teams | Location raises privacy questions |
| Timer apps | Start and stop a timer for each task | Freelancers and agencies | Forgotten timers |
| Automatic tracking | A desktop agent records work in the background | Teams that work on computers | Needs clear privacy rules |
Paper timesheets
Simple and free, and the least reliable. Handwriting has to be retyped for payroll, and nothing shows when an entry was changed.
Spreadsheets
A step up for a handful of people. They break down as the team grows, and anyone with access can edit history.
Time clocks
The standard for on-site shifts. Terminals that use fingerprints or face scans are covered by biometric privacy laws in some states, notably Illinois.
Mobile apps
Suited to crews who start the day at a job site. Be clear with staff about when location is recorded.
Timer apps
Good for people who bill by task and are disciplined about it. The weakness is human: timers get left running or never started.
Automatic time tracking
A desktop agent records working time, applications and idle time without input from the employee. See Automatic time tracking.
How do you choose a method?
Work happens on site, in shifts
Use a time clock.
Work happens in the field
Use a mobile app.
Work happens on computers, in an office or remotely
Use automatic tracking.
You bill clients by project
Use a method that attributes hours to projects as they are worked.
You have fewer than five people and simple pay
A spreadsheet can do, for now.
What mistakes cause problems?
Not paying for unauthorized overtime
You can discipline someone for working without approval. You still have to pay for the time.
Rounding that always favors the employer
Federal rules allow rounding to the nearest quarter hour only if, over time, employees are paid for all the time they work.
Automatic meal deductions
Deducting a break that was not taken creates unpaid time.
Editing records without a trace
Corrections should show who made them and why.
Keeping records too briefly
Three years for payroll records is the federal minimum.
How does BirdsEye track employee hours?
BirdsEye is an automatic tracker for computer-based teams. The desktop agent records working time inside the hours and days you set and separates idle time. Attendance comes from the same data: each person is marked present, late, absent, on leave or on holiday each day, with late arrival measured against a grace period. A manager can correct a day and add a note explaining why, and time away from the computer can be added by hand.
Time entries export as CSV for payroll and invoicing systems. BirdsEye does not run payroll itself. See the features.
Frequently asked questions
What is the most accurate way to track employee hours?
For computer-based work, automatic time tracking, because it records time as it happens. For on-site shift work, a time clock.
Do salaried employees need to track their hours?
The Fair Labor Standards Act does not require time records for exempt employees. Many companies track their time anyway for client billing, project costing and workload planning.
How long must employers keep time records?
Under federal rules, at least three years for payroll records and two years for time cards and similar records. Some states require longer.
Can employees track hours on their own computers?
Yes, if they install the company's tracking software. Tell them what it records, and limit it to working hours.