What is Time Tracking?
Time tracking is the practice of recording the time employees or contractors spend on specific tasks, projects, or clients. The data powers payroll, client billing, labor law compliance, project profitability analysis, and remote work accountability.
In more detail
Time tracking ranges from simple (a spreadsheet or punch clock) to sophisticated (integrated tools like Toggl, Harvest, Clockify, Hubstaff, or Time Doctor). Under the US Fair Labor Standards Act, non-exempt hourly employees must have accurate time records, and accurate tracking protects employers against wage claims.
For remote teams, time tracking tools often add screenshots, keyboard activity, or application tracking. These features are useful but can feel invasive; most companies use activity-based billing or outcome-based management instead of minute-by-minute monitoring.
How it works
- Workers log time manually or via timer.
- Software attributes time to tasks or clients.
- Managers review and approve timesheets.
- Data feeds payroll, billing, or project dashboards.
- Reports reveal over/under utilization and project health.
- Integrates with project management and accounting tools.
Related terms
Mini FAQ
For US non-exempt employees, yes. The FLSA requires accurate time records. For salaried exempt employees, not strictly required but often still used.
Depends on billing model. Flat-fee managed staffing often skips client-facing time tracking; hourly contractors require it.
In most US jurisdictions, yes, with proper disclosure. Some states (Connecticut, New York) require written notice.