Tracking employee work hours is a major duty of employers. Accurate timekeeping directly affects wages, overtime pay, and compliance with labor laws. It also prevents wage disputes involving state and federal agencies or the court system.
Importantly, Arizona does not have a unique state-specific timekeeping statute; employers must comply with the federal Fair Labor Standards Act (FLSA) and state wage payment laws to ensure employees are paid correctly for all hours worked.
Timekeeping Requirements in Arizona
Arizona employers must follow the FLSA (29 U.S.C. § 201 et seq.), which sets nationwide standards for tracking and compensating employee time.
Employers are required to maintain accurate records of:
- Hours worked each day
- Total hours worked each workweek
- Regular and overtime pay rates
- Total wages paid
- Dates of payment
These records must be kept for at least three years. The system used to track time must be reliable, consistent, and accurate.
Common Methods Employers Use to Track Time
Employers in Arizona use a variety of systems to monitor employee hours, depending on the size of the business, the nature of the work, and the workforce.
Manual Timecards
Smaller employers may still rely on paper timesheets or handwritten logs. While cost-effective, this method is prone to errors and can lead to disputes over hours worked.
Time Clocks
Mechanical or electronic punch-in/punch-out systems are common in industries like retail, manufacturing, and healthcare. Modern versions use swipe badges or PIN codes to reduce time fraud.
Digital Timekeeping Software
Cloud-based or mobile app systems allow employees to clock in and out from computers or smartphones. These tools often integrate with payroll and HR software.
What Counts as “Hours Worked”?
Under the FLSA, employers must track and compensate for all time an employee is required or permitted to work.
This includes:
- Mandatory training sessions
- Job-related meetings
- Job-required travel during the workday
- Waiting or on-call time when employees are not free to leave
- Rest breaks of 20 minutes or less (must be paid)
- Meal periods of 30 minutes or more may be unpaid only if the employee is fully relieved of all duties during that time.
Failing to properly capture and compensate for these hours can lead to wage and hour violations.
Overtime Tracking Obligations
Arizona adheres to federal overtime rules. Non-exempt employees must receive 1.5 times their regular rate of pay for any time worked over 40 hours in a workweek.
Common compliance issues include:
- Misclassification of employees as “exempt” when they don’t meet the criteria under 29 C.F.R. Part 541.
- Failing to record all hours worked, especially remote or off-the-clock time
- Inaccurate calculations of the regular rate (e.g., omitting bonuses or incentives)
Employers must closely monitor weekly hour totals and ensure proper exemption classification to avoid costly violations.
Employers may not:
- Alter or falsify time records
- Automatically deduct breaks if not actually taken
- Require or permit “off-the-clock” work
- Ignore overtime hours actually worked
Under the FLSA, the burden of accurate timekeeping falls on the employer, not the employee.
Contact the Phoenix Wage and Hour Dispute Lawyers at Houk Employment Attorneys for Help Today
If you believe your employer has failed to accurately track your time or denied overtime, you may have a claim under federal or Arizona wage laws. Timekeeping violations can result in significant unpaid wages and damages.
A qualified Phoenix wage and hour attorney at Houk Employment Attorneys can evaluate your case, help you file a complaint with the U.S. Department of Labor, and pursue legal action to recover what you’re owed.
For more information, please contact the experienced employment attorneys at Houk Employment Attorneys to schedule an initial consultation today.
Our employment law firm is conveniently located near you, with an office in Phoenix, AZ.
Houk Employment Attorneys
1850 N Central Ave Suite 2010, Phoenix, AZ 85004
(480) 569-2377
