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Small Business Tips: Benefits of a Time Clock

Keeping track of employee hours is a vital part of running a business or company. If proper records are not kept, you could find yourself on the wrong side of the law with the Department of Labor. Installing and using a time clock — like those at Allied Time — provides many benefits to both you — the employer — and your employees.

Track Records and Reduce Errors
There is always room for errors when an employee tries to keep track of how many hours they have worked in a week. Even with their best intentions, mistakes and miscalculations occur. Especially when the beginning and ending of breaks occur. Without a time clock, trying to determine what hours the employee has worked will lead to many errors. And these errors will take valuable time to correct, and there may even be some that go unnoticed. A proper time clock system actually keeps track of your employee hours down to the exact minute, which — lets be honest — not many people do on their own. All of which will eliminate any potential mistakes of an employee not being paid for time that they worked and vice versa.

Compliance with Federal Law is Simplified
Federal law requires all employers have and keep accurate records of their nonexempt employee’s shifts. From the very beginning to the very end of the shift, employers must keep records of the hours worked per day and per week for every single one of their employees. While, the law doesn’t require that an employer must use a time clock, utilizing one will help in your defense if you are ever in dispute over hours worked with the Department of Labor.

Prevent Schedule Adherence Problems
Many of the newer models of time clocks give the employer the option of programming the schedule of their employees into the machine. Depending on the model, the time clock can even alert you when an employee tries to clock in later then they were scheduled, or if the employee has skipped their required break. These type of time clocks encourage your workers to take their require breaks and even identifies which employees are tardy. There are also options that lock employees out before a certain time, which prevents clocking in early.

Manage Your Overtime Costs More Efficiently
Time clock models that can be programmed help you identify which employee is accruing overtime or who is coming close to the overtime threshold. You can set the time clock to alert you when your employees are reaching the overtime limit. With this knowledge, you can either send them home earlier then schedule to save on overtime costs or remarriage the schedule accordingly.