Exempt employees may be paid a salary by their employer rather than an hourly wage.

The terms exempt and nonexempt refer to whether the employee is exempt or nonexempt from FLSA rules. It is important to know the difference between an exempt and nonexempt employee. Keeping accurate record of nonexempt employees’ hours through cloud-based time tracking systems ensures that they are paid the correct amount that can automatically adjust their pay to reflect any overtime worked.

Some government and medical employees may have different thresholds. The FLSA requires overtime compensation at time plus one-half per hour over the 40-hour threshold per week for nonexempt employees. The Fair Labor Standards Act (FLSA) is a federal labor law of general and national application that covers overtime rules, minimum wage laws, child labor laws, and the equal pay act. Who sets the federal time tracking standard? It’s a constant race to beat the clock to punch-in upon arrival, or as they are scrambling back from a lunch break that went a little long.Įven though clocking in and out doesn’t allow for much flexibility, it ensures the employee is getting paid accurately for their labor, and the business owners are in compliance with Department of Labor (DOL) regulations. Not to mention, it can also make someone feel as though they are being watched. Hitting that ‘clock out’ button one last time before the weekend is certainly jubilating, but remembering to do it every day throughout the week can be a hassle. Like most technology, time clock software has changed immensely throughout the years from paper time cards to biometric time clock software, and everything in between. If you’ve ever had to clock in and out for a job, you know how critical time clock software is for small businesses. Clocking out after a hard day’s work is arguably one of the best feelings in the world.

Best small business time clock software