Misclassifying employees or failing to pay overtime correctly is the fastest way to get sued. The Fair Labor Standards Act (FLSA) requires time-and-a-half pay for all hours over 40 in a workweek for non-exempt employees. Digital time tracking is your best defense against compliance audits.
Under the FLSA, employees are generally entitled to overtime pay unless they meet specific exemption tests (Executive, Administrative, Professional, etc.). 'Non-exempt' employees must receive 1.5x their regular rate for hours worked over 40 in a workweek.
"As of 2026, the salary threshold for exemption has increased. Employees earning below this amount are typically non-exempt and MUST be paid overtime, regardless of their job title."
| Factor | Exempt | Non-Exempt |
|---|---|---|
| Pay Structure | Salary (Fixed) | Hourly (Usually) |
| Overtime Eligibility | Not Eligible | Eligible (1.5x) |
| Job Duties | Managerial/specialized | General labor/clerical |
| Time Tracking | Optional (but recommended) | Mandatory |
Avoid these common math errors when running payroll.
Establish a fixed 7-day period (e.g., Sun-Sat). You cannot average hours over two weeks to avoid overtime (unless you have a specific 8/80 rule implementation for healthcare).
Include bonuses and commissions in the 'regular rate' before multiplying by 1.5. Excluding nondiscretionary bonuses is a common violation.
Use a digital clock to capture exact minutes. Rounding is legal but dangerous if it always favors the employer.
Federal law is the 'floor', not the ceiling. States like California have stricter daily overtime rules (over 8 hours in a day = overtime). Always follow the law that provides the greater benefit to the employee.
Calculate gross pay including time-and-a-half.
Generally, no. Private employers cannot offer compensatory time off in lieu of cash overtime wages. This practice is mostly limited to government employees.
They might! Being 'salaried' does not automatically make someone exempt. If they earn below the threshold or don't meet the duties test, you must pay them overtime on top of their salary.
Yes. If an employee works overtime without permission, you must pay them. You can discipline them for breaking policy, but you cannot withhold pay.
Awards & Recognition
Recognized by industry leaders for value, ease of use, and performance.

Capterra
2026
Software Advice
2026
Software Advice
2026
Capterra
2026
Software Advice
2026
Software Advice
2025
Capterra
2025
Get App
2025
Capterra
2025
Capterra
2025
Capterra
2024
Software World
2023
Software World
2023
Capterra
2019
Get App
2018“The mobile app time clock has revolutionized how we manage our remote team. It's intuitive, accurate, and has saved us countless hours in payroll processing. The GPS feature ensures accountability without being intrusive. It's a game-changer for businesses with a mobile workforce.”
“As a small business owner, I was skeptical about implementing a new time tracking system. But this mobile app has exceeded all my expectations. It's user-friendly, reliable, and the reporting features have given me invaluable insights into our productivity.”
“The integration capabilities of this mobile time clock app are outstanding. It seamlessly connects with our existing HR and payroll systems, creating a streamlined workflow that has significantly reduced errors and improved our overall efficiency.”
“What we love most is the real-time data and reports, which provide clear insights into employee attendance and payroll expenses. Plus, the ease of use means less administrative burden, allowing our HR team to focus on more strategic initiatives. If you’re looking for a reliable payroll solution that enhances efficiency and accuracy, clockit.io is the perfect choice! Highly recommended!”
“ClockIt.io cut our timesheet corrections by more than half. Exports line up perfectly with payroll and the GPS clock-ins keep our field crews honest without creating friction.”
“Geofencing and kiosk mode at each site solved our late punches. Managers love the late alerts and I love closing payroll on Friday in minutes.”
“ClockIt’s overtime rules and approvals gave us immediate savings. Clear audit trails and clean timesheets mean finance isn’t chasing people anymore.”
“We schedule across multiple locations and roles. ClockIt.io handles PTO, availability, and publishes updates to everyone’s phones instantly—no more group chats.”
“Our trainers swap shifts right in the app and confirm attendance. Attendance and payroll line up perfectly—ClockIt just works.”
“Setup was fast and the support team was outstanding. We rolled out ClockIt to 120 staff in a week and adoption was near 100% on day one.”
“The reports in ClockIt.io make our monthly reviews painless. We finally have visibility into attendance trends and actual hours by department.”
“Time‑off requests, approvals, and balances are all in one place. Doctors see who’s off at a glance and we avoid coverage gaps.”
“For crews on the move, ClockIt’s GPS punch-ins and site-based rules keep things accurate. It’s the reliability we were missing before.”
“We tried three tools before ClockIt.io. This is the first one our team actually likes using—and it saves my admin two hours every payroll run.”
“Implementing ClockIt's biometric kiosks eliminated buddy punching overnight. The facial recognition is instant and works perfectly even in our warehouse environment. It's the most secure time tracking decision we've made.”