Is It Illegal for Employers to Change Time Cards?

Buddy Punch’s time tracking software makes it easy to document all edits to employees’ timesheets so you have a log of when changes were made and why. Require employees, managers, and admins to leave notes when editing timesheets, and have employees check a box when submitting their timesheets acknowledging that their hours are correct.

Is it illegal to change an employee’s time card?

No, it is not illegal for an employer to change an employee’s timesheet as long as 1) the change reflects the correct number of hours that were worked and 2) you notify the employee that you’re making the change.

“A correction is lawful when it accurately reflects the time actually worked, fixing a missed punch, a system glitch, or a genuine data entry error. It becomes falsification or underpayment the moment it reduces recorded hours below what was actually worked, regardless of the employer’s stated reason.”

The Fair Labor Standards Act (FLSA) requires employers to maintain accurate timekeeping records, even though employees can enter their own hours. Businesses may be at risk if they knowingly keep false records.

  1. How many hours someone worked each day and week
  2. Relevant pay rates, earnings, and overtime
  3. Any additions to and deductions from wages
  4. Total wages paid and the payment period

Note that for point one, saving a schedule alone may not be enough, especially when an employee works different hours than originally scheduled. Employees need to confirm the hours they’ve worked. 

When is altering timesheets illegal?

“The distinction is simple: correcting a mistake is permissible; changing a time card to avoid paying an employee for hours he or she actually worked is not.”

Consider these common examples: 

  • An employer alters an employee’s timesheet to reduce overtime hours. 
  • An employer pressures an employee into submitting false time cards that leave out overtime.

Edward Hones recommends creating a company overtime policy:

“The safer approach is a clear policy requiring pre-approval for overtime — paired with actually paying for any work performed even if it violated that policy — then addressing the policy violation separately through normal disciplinary channels, not through withholding pay.”

SituationWhat to do 
A clock-in is missedAdd the verified start time. Don’t change the start time without checking with the employee first.
A forgotten clock-out leaves an overstated entryCorrect it to the verified finish time. Reducing an inaccurate entry is legal if it doesn’t remove compensable work.
A manager removes worked overtime because it wasn’t approvedCompensate employees for their work even if nobody approved it. Lack of approval doesn’t erase compensable work the employer knew, or should have known, was performed. Inform employees of your overtime policies (or use time tracking software that notifies you before employees go into overtime) to prevent this from happening again. 
A meal deduction is applied even though the employee worked through lunchIf an employee works through their scheduled break time, it doesn’t count as a break, and you need to pay them accordingly. Short breaks of up to 20 minutes are usually paid.
A manager replaces actual hours with scheduled hours to meet the budgetPay the employee for all hours they worked. Budget limits don’t constitute a legally valid reason to underreport work performed. 

How to change timesheets

Time tracking software like Buddy Punch can make this easier. Whenever any changes are made to timesheets, the tool stores a record of what changes were made, when, and by whom. You can also require admins, managers, and employees to leave a note when they edit a timesheet to explain why the edits were made.

A timesheet change record on Buddy Punch. The system stores the original and revised times, who made the change, when, and the reason for the change. This helps you stay compliant with recordkeeping requirements.
Pro tip
Requiring managers to leave a note explaining why edits were made to a timesheet can help you catch instances where they made changes that could put you and the business at legal risk.

Under federal laws, basic earnings records, including time cards or schedules, must be stored for two years, but payroll records must be stored for three years.

What are the consequences of falsifying time cards?

Depending on the type and degree of violation, federal law can impose different types of consequences, including: 

  • Financial consequences, like any unpaid dues or overtime, liquidated damages, and attorney fees
  • Civil penalties in case of repeated or wilful violations
  • Criminal prosecution, including fines and imprisonment

“Falsification is typically a violation under FLSA recordkeeping rules with additional DOL fines. Enforcement can also come through DOL or state investigations, private or class action lawsuits, and, in some cases, personal liability for managers or executives involved.”

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