When your employees punch a time clock or use timekeeping software, you know exactly how many hours they work. If they forget to clock out, you still must pay them for the hours they put in. It's your responsibility to figure out how much they worked and how much you owe them.
Tip
You still have to pay an employee even if she forgot to clock out. Usually, you'll just have to take her word for the hours she worked.
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Contact Your Employee
Once you discover an employee didn't clock out, contact the person and ask what time they quit for the day. If you have security cameras covering the work area or a shift supervisor keeping tabs on people, you may be able to confirm the employee's statement. Otherwise, you'll have to take their word for it.
Whatever timekeeping system you use, there should be a way to fix time clock errors. With online time-tracking systems, for instance, you or your employee can log in and adjust the time sheet to show the correct time. After you make the adjustment, you can start calculating the paycheck for the week.
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Repeat Offenders
Having to fix time clock errors is a frustrating waste of your time when it happens once. It's even more inconvenient when an employee forgets to clock out on a regular basis. Take steps to discourage employees from repeating this mistake.
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Include a written policy to cover this matter in the employee handbook. The text should remind employees that you expect them to clock in and clock out regularly. Remind them that this improves efficiency and saves them, not just you, time and bother. The handbook should say how you'll respond when errors repeat. A standard policy would be to offer a verbal warning, a written warning and then an escalation, possibly up to termination. To avoid that extreme solution, work on ways to solve the problem. For example, suggest forgetful employees set an alarm on their phones to remind them to clock out.
One thing you can't threaten to do is dock the pay of employees who forget to clock out. If an employee puts in eight hours, federal law says you must pay them for eight hours. Punishing employees for errors by withholding pay puts you in serious trouble.
Time Card Fraud
It's possible your employee's errors are fraud. They leave early and then claim to have checked out at the regular time. How do you know?
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If you suspect an employee is cheating, call the person into your office. Even if you can't prove it, an employee who knows you're watching is less likely to try scamming you. If talking doesn't satisfy you of their innocence, remind them of the penalties for defrauding the company.
If you receive a confession or have solid proof of guilt, you can adjust the time card to reflect the real hours. You can't afford to violate state law, so check with your attorney if you're unsure of the correct legal procedures.
References
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