Importance of Employee Time Tracking

Why time tracking matters 1
Time Tracking

Successful businesses often rely on time tracking software to help stay in compliance with their employees and the law. Far too often, businesses not accurately tracking employee time are forced to deal with devastating repercussions. In June of 2020, a local plumbing company in Tennessee violated Federal Wage and Child Labor laws. The owners did not pay employees for time they spent traveling back to the company’s shop following out-of-town assignments, which resulted in heavy overtime violations. Additionally, the employer’s failure to record this work time resulted in a violation of FLSA record-keeping requirements. Even worse, they had a minor engage in job duties prohibited by Department of Labor protections when the minor used various power-driven equipment to perform plumbing duties. The plumbing company ended up paying massive back wages, damages, and penalties. They also agreed to a permanent injunction which prohibits them from violating the FLSA in the future.

The truth is, manual time tracking of your business and employees is tedious and takes up a lot of time. Managers and owners often make the mistake of “keeping tabs” on their employees such as when they took breaks, business traveling, when they came into work, and when they left. This slippery slope of ‘time tracking’ often leads businesses to compliance violations with the Department of Labor.

To avoid making these mistakes, let’s take a look at how time tracking software will benefit you by maintaining compliance, increasing business success, and improving employee accountability and productivity:

Improved Accountability

Employee morale is incredibly vital for hardworking team environments, and investing in time tracking software can highlight their accomplishments. It is important to ensure each member of the team feels valued when they complete tasks. Not receiving recognition for work may cause employees to stop putting in 100% effort at all times. Time tracking software increases accountability because the employee can inform their employer on when they completed certain tasks and how much time was put into it. This also reinforces accountability within employees because when it is enforced, employees are more likely to complete jobs with increased efficiency, and will hold themselves accountable for their progress of projects.

Increased Production

Employees that submit working hours are more likely to have better time management skills while on the job. Tracking will also highlight certain projects that are taking up an inordinate amount of time. This gives managers a way to decide the risk vs. reward of an employee spending time on projects, and helps to strategize workloads for the future. Also, try not to start numerous projects at the same time. Multitasking all at once can decrease productivity and quality of work with your employees. Identify activities that aren’t crucial to the company’s progress and eliminate them. This will increase revenue and productivity.

Staying Compliant

Using a payroll provider can equip your company with employee time tracking services, project management tools, HR, Benefits, and reliable support. It’s also an added bonus that the legal liability of payroll correctly being inputted goes to the payroll company. Business services that provide Payroll, Bookkeeping, and Tax Filing services are incredibly vital to keeping your company in compliance and streamlining time tracking aspects of the business.

Southern Payroll & Benefits partners with the #1 ranked payroll service Gusto.

Contact us today and we’ll get your business covered!

Call: 423-207-2497



Businesses in Chattanooga, TN, trust Southern Payroll & Benefits with a variety of outsourced HR services, from payroll, to insurance benefits, and tax processing. We partner with you to insure your comfort and to advise on best-practices and compliance requirements. Southern Payroll offers one-month free payroll to all clients, along with no annual contracts, to make sure that we exceed expectations daily. We are also extremely proud of our 2% initiative, in which 2% of all payroll proceeds will be donated to the 501(c)3 approved charity of each client’s choosing. For more information about how we can help your business, schedule a meeting or call (423) 207-2497 today. 

Importance of Employee Time Tracking