Do we have to pay employees who clock in early?

Your employees clock in early but wait until their scheduled start time to work. Now what? This is a common problem with non-exempt employees, and as the employer, you must balance following labor laws and ensuring your employees follow company policy.

The Fair Labor Standards Act (FLSA) is a US labor law. The FLSA regulates minimum wage, overtime pay, and similar regulations. Furthermore, state laws also exist. These laws require you to pay employees for actual work time, regardless of clock-in status.

Specifically, you must pay employees for any time they are clocked in. This remains true even if they are not actively working. Proving they were not working is difficult once they are in the system.

However, solutions exist. You can resolve this situation to avoid constantly paying employees who clock in early.

While there is no one-size-fits-all approach to resolving this issue, you can try different strategies to determine the best fit for your company.

6 Ways to manage employees who clock in early

One important note to remember is that you can’t withhold employee pay. In doing so, you put yourself at risk of receiving Fair Labor Standards Act violations. So withholding pay is never the answer.

early clock in pay 600x400

Have a clear policy in place

Establish a clear policy. This policy should state that managers must pre-approve overtime pay. The reason for this is that some employees intentionally clock in early to accrue overtime.

Consequently, this policy provides official documentation. This documentation proves a company policy exists if you need to take disciplinary action.

Ensure employees sign that they’ve received the handbook as a formal acknowledgment of their understanding of the policy.

In addition, your policy should communicate other important information. This information should relate to clocking in for work.

For example, include details about where, when, and how to clock in. Also, outline expectations associated with clocking in regularly. Moreover, describe disciplinary actions for failing to clock in on time. Finally, you can even include timesheet rounding practices if applicable to the company.

Remember, you’re still responsible for paying for all time employees clock in, whether they’ve agreed that overtime must be pre-approved or not. But you’ll likely want their pay to include disciplinary actions for disobeying company policy.

Explain why it’s a problem

Some employees might not understand why clocking in early is a problem, to begin with, so they don’t take your warnings and requests seriously. In this case, be transparent about why clocking in early is a real problem for the company.

Also, be clear that you can no longer tolerate it. Be prepared to follow through with any disciplinary actions outlined in the company policy.

Discipline employees

Once your employees know they can’t clock in until the official start of their shift, you can begin disciplining them for violating company policy. The disciplinary actions may vary and can escalate depending on the number of offenses, but this is often required to change unwanted behavior in some employees.

Some disciplinary actions you might implement include:

  • An informal conversation about clocking in early
  • Formal warning
  • Written warning
  • Probationary period
  • Suspension of duties
  • Job termination

Remember that discipline alone doesn’t give you the right to withhold payment for the time they clocked in early.

Send employees home early

If you find an employee getting closer to reaching overtime and requiring overtime pay, send them home early. In doing so, they won’t work more than 40 hours per week.

However, while it might solve the overtime problem, it often leaves the company with an uncovered position that needs coverage, which presents an entirely different issue.

Place limits on your time-clocking system

Consider limiting how early an employee can clock in, depending on your time-clocking system. This might mean having a system where employees must clock in right on time or can only clock in up to 5 minutes early.

You need to find a balance. Employees who arrive early and start work must be paid, regardless of clock-in time. Therefore, a system limiting early clock-ins serves as a reminder. It reinforces that work should not begin before the official start time.

Discover why they’re clocking in early

If you find certain employees consistently clocking in early, try to understand why. Some employees clock in early because they want to hit overtime. In this case, are there overtime opportunities available? Are there advancement opportunities or special projects that will allow for a pay increase?

Other employees want to ensure they’re not late, so they clock in early. In this case, help them develop a better clocking-in routine to be right on time.

Strive to understand why your employees clock in early. With this knowledge, you can help them create a plan. This plan should aim to stop the behavior. Ultimately, this may help you avoid disciplinary action.

Additional resources:
The best timeclock options for small businesses New tab icon
Understanding and preventing wage theft in your organization New tab icon
Workplace etiquette: The ultimate guide to professionalism New tab icon