I did a little Googling and learned exempt employees using a time clock is not uncommon. Here’s the back story.
I have a friend (I know shocking right), an IT dude that is exempt but is required by his employer to punch a clock. When questioning the policy, his HR department directed him to several blog posts (his words not mine) on how they are within their rights to do so.
I asked him the standard questions, do they dock your pay if you work less than 40hrs a week (he laughed) -no, do they pay you overtime if you work over (again with the laughter) -nope.
While they may be within their rights to have exempt employees punch a clock, I see it as a slippery slope. In addition to any other issues he might have with the company, this policy only furthers his low morale and general disgust with the company.
At his request, I’ve opened the floor up to my fellow HR pros, what are your thoughts on exempt employee timekeeping? Have you been on the HR side of a company with this practice and if so how did your exempt staff take to the process?
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To me, forcing the exempt employees to punch in and out is a little ridiculous. What are they actually trying to measure? Do these exempt employees ever answer their cell phones or read and respond to e-mail during off-hours or from home? Unless you are trying to track effort for specific projects in order to bill customers, or evaluate the profitability of an initiative, I am against this practice.
I am totally against having exempt employees punch a time clock. I used to work for a small business, and one of the two owners was a real clock watcher who constantly pressured me to have a system for the three exempt employees (the other 40 employees were hourly) to either punch the time clock or submit a time sheet. I was always able to prevail but it was a constant struggle.
As everyone knows, exempt employees are supposed to be paid by the job/work, and not the time it takes. If someone wants to have exempt employees clock their time, I would ask “why?” I think the DOL would ask that question, too, if there was an audit. If an exempt employee were to file a FLSA suit claiming unpaid OT and the employer was making the employee clock their time, I think the employer would have some explaining to do as to why they thought the employee was exempt in the first place. It’s a legal risk that doesn’t need to be taken.
On the other hand, I re-classified an exempt supervisor to an hourly when I felt we couldn’t justify the exempt status. I let him submit his time to me by hand on a special form, without punching the time clock, so that he could maintain a “supervisory” status among the other hourly workers. I *do* think there is a moral issue that is very important in the long run.
My sister is an HRM at a retail store that requires her to punch in and out. She was told it was done bc of past abuses. Understanding that, it is still extremely demoralizing. In my place of employment we have to submit time sheets bc we do billable work, so it’s justifiable. It may not be illegal but technically if an exempt employee comes in for an hour, they’ve technically worked an entire day. It sounds like this practice is in place to make sure people are putting in “enough” office time. That type of micro-managing is counterproductive. Just because I’m at my desk doesn’t mean I’m actually working. With the increase of virtual work habits it is to be expected that the typical 40 hour workweek will become nonexistent.
I was once hired as an HR dept of 1 and during the hiring process discovered that they not only contracted with an ineffective “recruiter” but also used time clocks for all employees. Needless to say, I had 2 very good reasons they needed ma and very quickly got rid of both.
Sounds ridiculous! Not sure which blog they even referrred too. Seems like they are taking some very incompetent advice. Defeats the very idea of building a result oriented workforce.
1. Do you think those HR chicks are punching in/out on the time clock? No way.
2. What is this? 1947?
3. Now the employee can show the HR department a real blog post and tell those HR biddes U R DOIN IT WRONG.
Seriously,
Seriously, this is the dumbest example of HR I’ve read in a very long time. That’s saying something.
Consensus. Unless there is a billable hour issue (and full day clocking doesn’t justify that with the DOL) it is a truly slippery slope, and most likely a control/old school thinking issue on the part of someone in the company. I don’t think your friend will change his HR dept’s mind (particularly if they are using blogs to prove their point) so he can fight this battle, or search for a company that appreciates his talents, and recognizes that he’s a valued professional.
@Steve From what I understand, they aren’t doing it to track projects. My friend does answer the phone and email when he’s ‘off the clock’. He usually clocks 60+hrs a week.
@Joan He’s keeping copies of his time cards just in case. What baffled me is when he questioned the HR team on why he was required to do this, they pointed him to blog posts that said they could. My impression is they are doing it just because they think they can. And yes, moral is looooow
@Allyson Agreed, 100% agreed.
@Lisa One person HR department, been there done that; it was great learning experience. I dealt with the conversations of putting exempt employees on time cards back then too; talked that company out of it real quick.
@The HR Store – I’d like to see those blogs myself. I told my friend that blogs are most often skewed to the opinion of the writer, you shouldn’t base your policies and procedures solely on blog posts.
@Laurie – As I said earlier, I damn near spit my diet coke out of my nose when I first read your comment. I would almost bet a good pair of shoes that they do not clock out. I would love to get my hands on a copy of their employee handbook, I bet it’s a riot!
@tlcolson – I think it’s futile to try to change their minds. From what I gather this isnt the only goofy thing they do. I’ve told him again and again he needs to find a new job, but job market and all.
One explanation that I’ve heard used (depending on the software / tracking capabilities behind the clock itself) is to track “who is in the building” for safety evacuation / emergency readiness. That may or may not be a real justification of course, depending on the situation.
They should save the money on the time keeping equipment and administration and invest in a method of employee performance evaluation. It sounds like the way to get ahead at your freind’s company is to do nothing but stay in the office for a long time.
We required exempt employees to enter weekly timecards. They do not punch in. Two reasons, one is to charge time back to another company we partner with. The second is to capture vacation time. If employees aren’t submitting timecards of some type, how are other companies capturing vacation time submitted?
@Mary – We require all employees to request PTO in advance in writing. This way we have something to remind us to key in the time. For those off site, you have to have some level of trust; I mean they are exempt employees and are paid for the work they do not the time they work.
There are easier ways to track an exempt employee’s PTO or vacation, sick time without them punching in. Only the PTO, vacation time etc can be entered in the timeclock software after the accrual policy has been put in. Get some TimeForce software by Qqest
What would be the reason to have just certain **Exempt** employees “sales” punch a time clock and not the others? We “women” have been forcefully required to punch a time clock, where as the “men” in the in the sales department do not have to. They say this will not effect our exemption or pay, so if that is the case then why would they not require everyone to do this. And what happens on the days your doing out side sales, HR said they would adjust your time card for you? This makes no since, and I don’t want to get fired for not doing what they require, “Do I Have a Choice here?”
It never ceases to amaze me how an employer is considered wrong by HR Professionals for making sure his employers are doing exactly what they are paid to do. Every item on this blog deals with morale and assumptions of the legal “slippery slope” by an employee simply tracking all its assets/liabilities. As an employer, I shoud be able to track every dollar spent including funds paid to professionals. I hate to say it, but most of the current scandalous big company abuse has come from lack of accountability from “professional executives.” Does anyone have any substance to back up these assumptions, any case law?
@treble My first question is do you have an HR person in your office? If so it sounds like you have a bad HR person. Like Trish says it’s not a matter of case study or legal precedence but one of trust and morale. If you feel as though you need to track every single thing your employees do, you may need to reconsider their employment with your organization. Exempt employees are paid to get a job done regardless if it takes 50 hrs a week, 80 hrs a week, or 32. They are responsible for key functions in the company and not to sit and man a desk and punch a clock.
And on a side note, read more of the blog. I cover more than morale and assumptions of a “slippery slope”.
You won’t like this answer, but the DOL holds the position that asking exempt level employees to clock in and out does not affect the employee’s exempt status. It also does not violate the salary basis test. According to the DOL, “it is not a violation of the FLSA or its implementing regulations for your employer to track your working time, even if you are an exempt employee. See, e.g., Douglas v. Argo-Tech Corp., 113 F. 3d 67 (6th Cir. 1997).”
From a practical standpoint though, if you are hiring exempt level employees, the predominant practice is that they are not asked to clock in and out. Doing so can absolutely negatively affect their morale. My personal opinion is that if you cannot trust an employee, then you should not have made that hire. Just my 2 cents…
What if not all exempt employees punch the clock? shouldn’t all exempt staff, including management, then have to punch the clock? If not, why some and not others?
I was told that in the past, they have had exempt status employees claim they did not know they were exempt and they were not paid for working their lunch.
I am an HR Director that punches a clock and am NOT DEMORALIZED by this. My employers know me to be an excellent employee. The timekeeping is for recordkeeping purposes and because of past abuses from other exempt employees that I recorded. My employers have never denied me any time off. I work at minimum 60 hours on a weekly basis. As far as being demoralized, SERIOUSLY, GIVE ME A BREAK. Whenever an employer has to track time the first thing exempt employees cry is that it is demoralizing and job morale is low. Times are tough all over. There is no perfect position. So to those demoralized individuals why not move on to another position where you will not be demoralized. Oh gosh, it does not exist!!! That is if you can find a new job. So ante up and put on your “big people clothes” and go get a new job. Besides I only find that exempt employees are demoralized by record keeping when they are doing something that they should not be doing.
I have a better idea, start your own business and deal with your own employees and you will see exactly what it like to be an owner with demoralized employees. Your perspective might radically change.
HR Director: So, because times are tough, employees should just accept the fact that they have to do something that doesn’t seem fair and is de-moralizing? Sounds like you are “Mr.Company Man” I am getting sick of employers constantly reminding employees how lucky they are to be working and taking advantage of this fact. Yes, we know we’re lucky, but that doesn’t meant that we should put up with silly employer tactics to just to keep tabs on their longtime employees.
We use an online timekeeping program, which is just an internet version of the time clock. If an exempt employee works more than 40 hours in one week can they be required to enter ONLY the 40 hours they are going to be paid for or is it required to enter ALL the hours worked?