How Time Tracking Software Sheds Light on Overtime

Time tracking software sheds light on construction overtime by providing real-time visibility into labor hours, costs, and patterns that were previously missing in manual processes. This overtime tracking software helps contractors identify trends, prevent overruns, and make informed decisions before costs spiral out of control.

Because of the dynamic nature of commercial construction, overtime is a common part of the project lifecycle. From weather delays and material changes to adjusted completion dates and shifted milestones, overtime allows construction companies to make up lost ground and hit their deadlines on schedule.

However, unchecked overtime can be costly. According to a study done be Deloitte, before overtime is even factored in, labor costs already make up 50%-60% of a company’s total expenses.

Now add additional weekly labor hours — which, by law, is one and one half times each employee’s regular rate — and contractors are looking at hefty payrolls.

But there are ways to keep overtime in check. By leveraging technology, like construction time tracking software, the office has greater visibility into what the field is doing. And, if there are discrepancies between the work versus the payroll, contractors can quickly modify overtime policies.

Whether you’re new to time tracking or looking for more impactful ways to save money on payroll, we’re here to explore how a construction mobile app can tighten up overtime.

What is Construction Overtime?

Overtime is the amount of extra time a construction employee works beyond their contracted hours. According to the Fair Labor Standards Act (FSLA), a full-time workweek is capped at 40 hours and begins on Mondays. Overtime only comes into effect after a laborer has hit their 40 hours. For example, if, during the same week, Employee L completes their full-time requirements and then continues to work, overtime rates are applied.

As mentioned earlier, overtime is one and a half times the pay rate of each individual employee. A construction company can’t set a general rate and consider it legal. Every worker’s specific rate must be brought into the equation. Overtime is added to a paycheck at the end of a pay cycle — it isn’t distributed separately.

Why is Construction Time Tracking Software Important?

Construction time tracking software reveals overtime patterns through automated digital monitoring, replacing manual timesheets and paper timecards. These products monitor when an employee is on the clock, note when they sign off, store the hours in the system and distinguish the laborer’s work classification. Some specific features of a time tracking solution include:

• GPS time stamps to indicate where an employee is when they clock in
• Geofencing to allow clock-ins/clock-outs in specific locations at the jobsite
• Biometrics to identify the worker logging in
• A cloud-based network so field employees can clock in even without internet access

Generally, construction time tracking software is an app so the entire crew can easily clock in and out on their mobile devices. Once the workweek is completed, all the employee needs to do is hit submit, and their hours are sent over to the payroll system, eliminating printed timesheets and manual timecard processes.

An extra benefit to a construction-specific time tracking solution is that it can handle the complexities of the industry. So if workers are assigned to multiple jobsites in a single pay period, or are handling a variety of tasks, which means rotating pay rates, the app keeps track of all this information.

How Can Construction Time Tracking Software Simplify Overtime?

For any contractor looking to drill down into their labor costs and find ways to stay on budget, implementing a time tracking solution is one of the strategies with the greatest return on investment. In fact, some construction companies have recently reported saving almost $1 million in overtime hours just in their first year alone.

The trick is that a construction mobile time tracking app is built to offer real-time information, directly from the field, regardless of internet access or not. So, employers can make more informed split-second decisions before they overspend on overtime. Some ways that time tracking software simplifies overtime include:

Responsive Clock Ins/ Clock Outs

Commercial construction is complex. Workers can be assigned to multiple sites, multiple tasks and multiple trades all within a single pay period. This makes accurately tracking hours difficult, especially on paper timesheets.

But with jobsite time tracking software, GPS technology gives contractors visibility into their workforce, regardless of labor size. From the office, construction owners can see who is clocking in where, what tasks they’re doing and how long their working day is. It will be clear which site, and which people, are tackling overtime shifts more frequently in case caps and restrictions need to be put into place.

Live Data Collection

A construction mobile app gathers each employee’s hours as they’re being worked. Which makes the digital timecards incredibly accurate. Instead of employees writing down their own clock-ins, break times, lunches and clock-outs on timesheets, the time tracking software does it all for them. Employee A can no longer note that they’ve been working since 8 am when in reality they arrived at the job around 8:45 — the geofencing wouldn’t have allowed the clock in until they actually reached the set location boundaries.

Since all the data is more precise, the number of overtime hours worked can be reduced. The aforementioned Employee A has to truly put in eight hours of work before overtime rates kick in, as opposed to them claiming they’ve been at the site almost an hour before they actually were.

Biometrics

We want to trust our employees, but they are human. And buddy punching, aka when one employee clocks in or adjust a timecard for another coworker, is a rather popular phenomenon. So Employee H may claim they now qualify for overtime, but in reality their friend has written in additional hours for them. If a construction foreman is in the office that day, it’s hard to confirm or disprove.

A construction time tracking app is equipped with the technology to recognize the person clocking in and approve or reject the clock in if the biometrics is passable or not. By reading:

• Fingerprints
• Facial features

The software can authenticate the employee ready for the shift or deny them and send a notification to the construction owner. Either way, contractors can know that if someone is now in overtime range, they can be confident that it’s the correct person.

Virtual Signatures

Construction owners can program their mobile time tracking solutions to send forms to their field employees as they’re clocking out. These documents will show them:

• How many hours they’ve worked in the day
• How long their breaks were
• Confirmation that they took their lunch
• If they acquired overtime hours and how many overtime hours were recorded

The laborers are then prompted to validate this information by electronically signing off on the data. If there is concern, they can send a notification to the office that something was incorrect. However, if all is appropriate, then they must agree to the information prior to clocking out.

Contractors use these forms as evidence in any overtime disputes and as trails for potential audits.

Integrations With Construction Payroll Services

Construction time tracking apps oftentimes come with direct integrations with construction payroll software. The app will track the labor hours and the immediately upload all the data into the payroll system without any manual interference needed.

Outside of making general payroll processing easier, this pairing also simplifies overtime payroll processing too. The construction payroll service will already have the rates for each employee built into the software so once overtime hours are indicated, the time and one half rates are immediately applied. There is no need for any by-hand calculations, it’s all done in just a few seconds. And all overtime is indicated in the paystubs so there can be no dispute by employees.

Integrations With Construction Accounting Software

In order to save money on projects, contractors need to know what their finances look like. By syncing a construction time tracking software with a construction accounting solution, the data shared between the two systems paints a robust picture of the project’s progress.

The mobile app collects and stores all labor hours and employee information which can then be transferred into an accounting software for contractors. The budgets and job cost reports are automatically updated to reflect the project’s most recent status. If there are discrepancies, construction professionals can drill down into the financial information to see where overruns are occurring.

If, for example, there’s been a noticeable increase in labor costs and burden, a construction owner can run a job cost report. Let’s say that in the drill down it’s apparent that there’s been an exceptional amount of overtime worked.

The same owner can then corroborate this by checking the time tracking solution to see which jobsites are permitting additional shifts. The field can immediately be messaged, and compromises can be made.

Because this data is stored and accessible in both systems, these actions and decisions are made within a few hours as opposed to across days or weeks.

How Does WorkMax Uncomplicate Construction Overtime?

In order to successfully manage overtime opportunities, contractors need to have consistent visibility into their workforce. And construction mobile time tracking software can offer that clarity.

With GPS technology that only allows clock ins near the jobsite and biometrics that identifies the employee ready to start the day, contractors know that their people are in the right place at the right time. Virtual signatures and third-party integrations minimize discrepancies, automate payroll processing and keep the General Ledger updated. If overtime shifts become too costly, the office immediately knows and can act rapidly.

Implementing a time tracking system to track overtime may seem daunting, but with the right research, patience and the appropriate training, construction companies can save thousands very quickly.

One specific construction mobile app with a history of cost-saving success is WorkMax. This app offers GPS Time Stamps, geofencing, facial recognition and integrations with popular accounting and payroll services to help any construction business effectively manage their overtime. For an in-depth look at WorkMax time tracking software, contact our specialists today!