Ever had a team member swear they were at work on time, but the time clock says otherwise? It happens more often than you'd think.
Employees forget to punch in after a lunch break, get distracted by phone calls, or just assume the system will magically record their worked hours.
But here’s the thing—those missing punches can mess up payroll, cause major discrepancies, and even land you in trouble with the labour laws clocking in and out rules. So, what’s an employer supposed to do? Let’s break it down.
Why accurate timekeeping is crucial
If employees forget to clock in or out, it’s not just a minor mistake—it can throw off payroll, mess up record keeping, and even cause legal trouble.
Accurate timekeeping isn’t just about tracking worked hours; it’s about staying compliant, avoiding major discrepancies, and making sure everyone gets paid what they’ve earned.
Impact on payroll and compliance
A single missed clock can mess up an entire pay period. If a team member forgets to clock in, their total hours worked might not be recorded correctly, leading to wages earned being miscalculated.
This creates problems for both the employer and the employee, especially when dealing with non exempt employees who are entitled to overtime.
The Fair Labor Standards Act (FLSA) and state laws require businesses to keep years payroll records that accurately reflect working time.
If a company fails to track hours worked correctly, the department of labor could step in, and let’s just say… you don’t want that headache. Some potential consequences include:
- Legal fines for failing to comply with the labour standards act FLSA
- Unpaid overtime claims, leading to costly additional work for the HR department
- Disputes with employees over wages earned and overtime calculations
- Issues when calculating time cards for payroll processing
Even if an employee forgets to clock in, the act requires that they’re still paid for all worked hours. But without proper record keeping, proving those hours becomes a challenge.
That’s why a solid company policy on timekeeping is essential—not just to avoid failure in compliance, but to keep everything running smoothly.
Legal obligations under labor laws
When it comes to clocking in and out, the law isn’t forgiving. Whether an employee forgets to punch in after a lunch break or the time clock malfunctions, the responsibility to track worked hours still falls on the employer. Ignoring this? That’s an easy way to end up in trouble with the state's department of labour.
Employer responsibilities for accurate records
The Fair Labor Standards Act (FLSA) and various state’s department regulations make one thing clear: businesses must maintain years payroll records that accurately show total hours worked by every team member. These records aren’t optional; they’re a legal requirement.
👉 Key obligations for employers include:
- Keeping time cards and payroll records for a set period, as required by law.
- Ensuring all non exempt employees are paid for their working time, even if they forgot to clock in.
- Accurately recording breaks, overtime, and total hours worked to avoid disputes.
- Following collective bargaining agreements if they apply to specific workers.
Even if an employee forgets to clock in or out, the law still requires they be paid for all hours worked.
That means employers must find a way to verify the total hours worked—whether through time cards, supervisor approval, or reviewing the schedule. Failure to do so?
That could lead to fines, wage disputes, and a visit from the hour division of the department of labor.
‼️ Bottom line: If your record keeping is sloppy, it’s not just a payroll issue—it’s a legal one.
Common reasons for missed clock-ins and clock-outs
Let’s face it—employees forget to clock in or out all the time. Sometimes it’s an honest mistake, sometimes it’s… well, a little too convenient. Either way, missing punches cause major discrepancies in payroll and can lead to compliance headaches for the HR department.
Unintentional errors vs. deliberate time theft
Not every missed clock-in is a sign of foul play. Sometimes a team member is just caught up in their job and forgets. Other times, it's a case of "accidentally" extending a lunch break or sneaking in some extra working time. Here are some of the most common reasons:
Honest mistakes (it happens!)
- Distractions – A busy shift, urgent phone calls, or unexpected additional work can make an employee forget to clock in or out.
- Technical issues – A faulty time clock, a system glitch, or a phone dying mid-punch.
- New employees – A team member who’s still getting used to the company policy on timekeeping.
- Human error – Plain old forgetfulness, especially after a lunch break or a full day of work.
Not-so-honest mistakes
- Rounding hours – An employee deliberately clocks in a little later or clocks out a little earlier to adjust their total hours worked.
- Buddy punching – A team member asks a friend to clock in or out for them to cover up tardiness.
- Extended breaks – Taking longer breaks than allowed but forgetting to record the extra time.
While it’s important to address repeated failure to clock in or out, not every case is intentional. The key is to separate unintentional errors from patterns of misuse—and to have a clear employment agreement and company policy in place to handle both fairly.
Preventative policies and best practices
Dealing with missed clock-ins after they happen is a headache. The best solution? Stop them from happening in the first place.
A solid company policy can help remind employees to clock in and out correctly, reducing payroll errors and keeping everything legally sound.
Developing a clear timekeeping policy
A well-written timekeeping policy in the employee handbook leaves no room for confusion. Employees should know exactly what’s expected, what to do if they forgot to clock in, and what happens if they repeatedly fail to follow the rules.
✅ Key elements to include:
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Expectations – Make it clear that every team member must clock in and out correctly using the designated time clock or system. Define what counts as acceptable working time, including breaks and overtime.
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Missed punches procedure – Employees must report a missed clock-in or clock-out immediately. Require written confirmation or supervisor approval to adjust their total hours worked.
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Consequences for noncompliance – Outline what happens if an employee forgets to clock in too often. First-time mistakes might be a warning, but repeated failure could result in written warnings or other disciplinary action.
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Legal compliance – State that all hours worked must be paid, even if an employee forgot to clock in. The law requires accurate record keeping, so managers must verify and correct any missing entries to ensure compliance with the labour standards act FLSA.
A clear employment contract or employment agreement should also reference timekeeping expectations. This way, employees know from day one that accurate clocking in and out isn’t just a suggestion—it’s part of their job.
Implementing technology solutions
Let’s be honest—if relying on employees to manually clock in and out was foolproof, we wouldn’t be having this conversation. The good news? Modern time clock systems can take human error (and excuses) out of the equation.
Choosing user-friendly time clock systems
A clunky system leads to more mistakes, frustrated team members, and endless corrections for the HR department. The solution? A user-friendly time clock that makes tracking hours worked as easy as possible.
✅ Key features to look for in a reliable system:
- Mobile clock-ins📱 – Employees can clock in and out from their phone, perfect for remote or field workers.
- GPS & geofencing📍 – Ensures that employees are clocking in from the correct location—no more “I was totally at the office” stories when they’re still at home.
- Automated reminders🔔 – The system can remind employees to punch in and out, helping prevent failure to clock in on time.
- Real-time tracking⏳ – Managers can monitor total hours worked, breaks, and even overtime, reducing major discrepancies in payroll.
A smart time clock reduces record keeping errors, improves compliance with the Fair Labor Standards Act, and makes it easier to prove wages earned in case of disputes. Plus, it saves the HR department from chasing down missing punches every pay period.
Establishing reminders and notifications
Let’s be real—people forget things. That’s why a good system should do more than just track worked hours; it should also remind employees when it’s time to clock in or out.
Automated alerts for clock-in/out compliance
A simple phone notification can save the HR department a lot of hassle. By setting up automated alerts, businesses can help team members stay on top of their time clock responsibilities.
✅ Here’s how to set up clock-in reminders:
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Text or app notifications – Many digital time clock systems send alerts reminding employees to punch in or out. These can be tied to schedule start and end times.
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Geo-based reminders – If using a GPS/geofencing system, employees get a phone notification when they arrive or leave work, ensuring accurate record keeping.
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Email alerts for missed punches – If an employee forgets to clock in, the system can notify both the team member and the manager, allowing quick correction before the pay period closes.
Handling missed punches when they occur
Even with all the reminders in the world, employees forget to punch in or out. When that happens, it’s up to the manager to step in and address the issue before it affects payroll.
Verification and manual adjustments
Before making corrections, the HR department needs to verify the actual hours worked. Here’s how to handle it:
- Check the schedule – Compare the expected shift with the missing clock entry.
- Speak to the employee – Ask for a self-report to confirm their worked hours.
- Review supporting records – Look at time cards, security logs, or even purchase records (like a lunch break receipt) to verify their presence.
- Consult witnesses – If needed, ask a team member or supervisor to confirm whether the employee was at work.
- Adjust payroll – The law requires that all wages earned are paid, so correct the records to reflect actual total hours worked.
Failing to correct missing punches can lead to major discrepancies in payroll, potential violations of the labour standards act FLSA, and frustrated employees who aren’t paid properly. That’s why keeping a tight record keeping process is critical.
Training and communication strategies

A time clock is only as good as the people using it. If employees forget to clock in or out too often, it might be time for a refresher on company policy and expectations.
Educating employees on timekeeping importance
The easiest way to prevent major discrepancies in payroll? Make sure every team member understands why clocking in and out correctly matters. A mix of training and clear communication helps keep record keeping accurate and reduces the chances of an employee forgets scenario becoming a regular headache.
✅ Best practices for timekeeping training:
- Include timekeeping rules in the employee handbook – Every employment contract or employment agreement should outline expectations for using the time clock, taking breaks, and logging hours worked.
- Hold refresher sessions – A quick HR department training every few months helps remind employees about their responsibilities and addresses common mistakes.
- Use real-life examples – Show how missing punches can delay their pay period, impact wages earned, and cause unnecessary back-and-forth with the HR department.
- Communicate frequently – Send out emails, post reminders in break rooms, or use the system to send notifications reinforcing good clock habits.
For employees who fail to follow procedures repeatedly, a more direct approach—like one-on-one coaching or a formal written warning—might be necessary. The goal is to fix the problem before it affects payroll, compliance, or employment records.
Disciplinary measures vs. payroll adjustments
Missed clock-ins happen, but when it becomes a pattern, it's no longer just a mistake—it's a problem. The challenge? Holding employees accountable while still following labour laws clocking in and out regulations.
Balancing accountability with fairness
The labour standards act FLSA and the department of labor are clear: regardless of a missed punch, all hours worked must be paid. That means even if an employee forgets to clock in, they must be compensated for their working time—but that doesn’t mean there can’t be consequences.
👉 Here’s how to handle repeated failure to clock in properly:
- First-time mistake → A verbal reminder from the manager, ensuring the team member understands the company policy.
- Second offence → A formal written warning, documented in their employment agreement or employee handbook.
- Third offence → A stricter consequence, such as a loss of privileges (e.g., no early clock-ins or late clock-outs allowed).
- Ongoing noncompliance → Further disciplinary action, which could be suspension or even termination, depending on collective bargaining agreements and state’s department rules.
The key is consistency. If one team member gets away with constant failure to clock in, others will follow. But at the same time, an employer can’t refuse to pay an employee for worked hours, even if they forgot to use the time clock. The solution? A strong system, clear company policy, and fair enforcement.
Monitoring and auditing time records
Trust is great, but verification is better. Regular checks on time cards and record keeping help prevent major discrepancies in payroll and ensure compliance with the labour standards act FLSA.
Regular audits for accuracy and compliance
A missed clock-in here and there might seem harmless, but over time, these mistakes add up—leading to incorrect wages earned, payroll errors, and potential legal trouble with the department of labor. That’s why routine audits are a must.
✅ Best practices for auditing time records:
- Review timekeeping records every pay period – Check time cards, verify total hours worked, and ensure non exempt employees are properly compensated.
- Look for patterns – If the same team member frequently forgets to clock in, it might signal a bigger system issue—or a failure to follow company policy.
- Cross-check with schedules and breaks – Compare recorded worked hours with assigned schedules, lunch breaks, and overtime logs to confirm accuracy.
- Keep years payroll records – The law requires businesses to store employment records for a set period, so make sure your record keeping meets both state’s department and federal requirements.
- Address discrepancies immediately – If an error is found, correct it before the next pay period to ensure the employee is paid correctly.
A strong system for monitoring working time keeps your business compliant, protects against payroll disputes, and ensures that every team member gets paid for their total hours worked—without unnecessary drama.
Simplify time tracking with Shiftbase
Tired of dealing with missed clock-ins, payroll errors, and compliance headaches? Shiftbase makes time tracking effortless with digital time clocks, automated reminders, and GPS-based clock-ins. Our employee scheduling tools ensure that every team member knows their shifts, reducing forgotten punches.
With time tracking, you get real-time insights into total hours worked, helping you stay compliant with labour laws clocking in and out. Plus, our absence management feature ensures accurate record keeping.
Stop chasing missing punches—Shiftbase does the work for you. Try it free for 14 days and take the stress out of timekeeping: Sign up here.