My understanding has always been that only non-exempt employees can clock in and out. Would it be a violation of wage and hour law if a salary exempt employee also clocks in and out?
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Thank you for your inquiry regarding using a timeclock to document time worked for exempt employees. This is a great question and a source of confusion for many employers.
Because exempt employees must be paid on a salaried basis, you are correct that only non-exempt employees are paid on the basis of the hours documented by a timeclock. However, employers may still require exempt employees to document their time worked – including through the use of a timeclock or similar timekeeping software – for recordkeeping and general information purposes.
The crucial caveat is that the exempt employee does not have his or her salary docked or reduced based on, for example, clocking in late or clocking out early. The timeclock should not be used as a method of computing pay for an exempt employee, otherwise the employer will likely lose the worker’s exemption.
If you would like additional information on this topic, including pros and cons of adopting this practice, you may also find this BLR Compensation Daily Advisor article informative.
We hope this information is helpful, and we thank you for your inquiry.
Another question about docked pay of a salaried employee.
I am required to work 45 hours a week. There are times I may work 60 hours. If I do not meet my required hours for 1 week, yet worked 60 hours another, can they dock my pay for the week I worked 40?
I have fellow managers that might work 80 hours one week, then 40 another and the employer will dock the pay the week they were short, but no compensation the week they worked double.
No, that is illegal. If pay is docked for less hours worked they must pay overtime at the rate of 1.5 times.
What if the employer requires you to clock in and out for lunch? There are times we are not able to take a lunch because of projects that are on a deadline.