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Time and attendance means tracking when employees start and stop work, their breaks, overtime and absences. The data usually feeds payroll. Systems range from paper timesheets to time clocks, mobile apps with location checks and software built into payroll or workforce management tools.
A time and attendance system records punches or hours, applies the employer's pay rules, flags missed punches or overtime and sends approved hours to payroll. Many add scheduling, paid time off tracking and alerts when someone is about to go into overtime. For staffing agencies, approved timesheets also drive client billing, so accuracy affects both pay and revenue, and clean data speeds up invoicing.
In the US, the Fair Labor Standards Act requires employers to keep accurate records of hours worked each workday and each workweek for nonexempt employees, along with wages paid. Many states add rules on meal and rest breaks, daily overtime and record keeping, so check the rules in each state where you have workers. Rules vary by state and change, and this is not legal advice.
Errors in time tracking lead to wrong paychecks, unhappy workers and wage claims. For staffing agencies, they also lead to billing disputes with clients. Recruiters and HR teams that understand time and attendance can set expectations with new hires and temps, answer pay questions quickly and choose tools that fit how and where people work.
Each Friday, a staffing agency collects paper timesheets from 60 temps at three warehouses. Missing hours and illegible entries cause weekly pay corrections and slow invoices. The agency moves to a mobile time clock with supervisor approval. Pay corrections drop sharply, and invoices go out on Monday instead of midweek.
A few of the time and attendance tools in our directory. Prices are the published starting price on the date we last checked.
Under the FLSA, employers must keep records for nonexempt workers that include hours worked each day and week, pay rates and wages paid, among other items. States may add more requirements. Check the Department of Labor guidance and your state rules.
Time and attendance focuses on recording hours, breaks and absences for payroll. Workforce management is broader, adding demand forecasting, shift scheduling and labor planning. Many workforce management tools include time and attendance as one module.
Exempt salaried employees are usually not required to track hours under the FLSA, though many employers still track leave. Nonexempt employees, including some salaried ones, must have their hours recorded. Classification matters, so check it carefully.
Written by recruiters at Work Insiders. Part of the recruiting and HR tech glossary. Updated October 2026.
