If you’ve ever looked at your payroll report at the end of a pay period and thought – “Where the heck did that overtime come from?” – you’re not alone.
Surprise labor costs, payroll errors, and outdated spreadsheets are still eating up hours for managers every week.
Overtime isn’t just a math problem. It’s a compliance issue. Under federal law, nonexempt employees must be paid at least time-and-a-half for hours over 40 in a workweek. Employers must also retain core payroll records for three years and the time data associated with that payroll for two years.
The best overtime tracking software makes complying with federal regulations easier. They eliminate payroll headaches by integrating with your existing systems, calculating overtime, flagging problems before they balloon into unexpected labor costs, and keeping both you and your employees confident the numbers are right.
Side-by-side comparison of the best overtime tracking software
Here’s a brief overview of our favorite overtime tracking software. To learn more about a specific tool, click its link to jump down to our full review.
- Buddy Punch keeps things simple and affordable while still offering advanced overtime rules, real-time alerts, GPS tracking, and payroll integrations.
- QuickBooks Time ties directly into the QuickBooks ecosystem and adds extras like mileage tracking, geofencing, and customizable reporting.
- Deputy shines in compliance-heavy environments with AI-powered scheduling, demand forecasting, and built-in Fair Workweek safeguards.
- Homebase is especially popular with restaurants and retailers thanks to its POS integrations, tip management, and generous free plan.
- Connecteam combines overtime tracking with broader workforce tools like scheduling, geofencing, task management, and process automation.
- When I Work helps small businesses cut labor costs with auto-scheduling, labor forecasting, and integrated time tracking—though pricing doubles if you need multiple locations.
What is overtime tracking software?
Overtime tracking software is a tool that tracks employees’ hours in order to determine the pay they earned during a pay period. It identifies overtime hours based on the policies you set and automatically calculates pay rates for both regular and overtime hours.
By default in the U.S., that means calculating time-and-a-half after 40 hours in a workweek. In states with stricter daily overtime or double-time rules — we’re looking at you, California — the software can layer those policies on top. That way, employees see their paychecks add up the way they expect, and employers avoid expensive compliance slip-ups.
Some overtime tracking software is built beyond the basics. The best time tracking tools don’t just tally hours after the fact. Instead, they flag when someone is about to tip into overtime and lets you adjust schedules before costs spike. They also deliver instant, audit-ready reports that cover all your recordkeeping obligations.
Done right, overtime tracking tools are part calculator, part early warning system, and part insurance policy.
Benefits of using overtime tracking software
Tracking overtime manually is both tedious and risky. One small error in a spreadsheet can snowball into payroll disputes, budget overruns, or even compliance issues.
Overtime tracking software takes those headaches off your plate by automating the hard parts: calculating hours correctly, flagging issues before they cost you, and keeping your records airtight.
- Payroll you can trust: Manual math leaves too much room for error. Automated overtime calculations mean regular hours, overtime, and double-time are split cleanly. That way, there are no disputes, discrepancies or late night fixes before payroll goes out. You want your employees to know they’re being paid fairly and your managers to know the numbers are solid.
- Lower labor costs: Overtime is often unintentional. A few early punch-ins here, a late punch-out there, and an extra shift given out because you’re trying to create schedules by hand. That’s all it takes to blow your labor budget for the pay period. Good time tracking tools help you manage overtime more efficiently. They send alerts when someone is close to hitting overtime. They give you a chance to swap shifts or send someone home before the extra costs stack up.
- Built-in compliance: The Fair Labor Standards Act (FLSA) requires employers to pay overtime and keep detailed records. The best tracking tools do both by automatically logging hours in ways that stand up to audits.
- Less time theft: Features like GPS check-ins, geofencing, photo verification, and punch limits keep everyone honest. Employees only get paid for the hours they actually are on site and working, not pulling into the parking lot or having their coworker punch them in early.
Overtime tracking software cuts down on repetitive administrative tasks like approvals, edits, and payroll exports.
You don’t want your supervisors wasting time massaging spreadsheets every pay period. The right tools give them back the time they need to build efficient schedules, coach staff, and help run your business.
Key features to look for in overtime tracking software
Not all overtime tools are created equal. The right system should cover the basics flawlessly and give you a few extra levers to keep labor costs under control. Here’s what to look for:
- Customizable overtime rules: Many businesses run on different pay policies, so you need software that lets you set up overtime, double-time, or even daily overtime, among other custom rules, without breaking.
- Real-time overtime alerts: Seeing overtime after you run payroll is too late. Look for tools that warn managers when someone is close to crossing the line so you can swap shifts or adjust schedules before it costs you.
- GPS, geofencing, and photo verification: These accountability features make sure people clock in when, and where, they’re supposed to. They also protect against buddy punching, which is a common source of inflated overtime.
- Punch limits and auto-clock outs: Prevent employees from clocking in too early or forgetting (or “forgetting”) to clock out at the end of a shift. These small guardrails add up to big savings over time.
- Timesheet approvals: Manager sign-off before payroll keeps errors from slipping through. This builds accountability into the process.
- Payroll integrations and exports: You shouldn’t be retyping numbers into QuickBooks, ADP, or Paychex. The best software either integrates directly with your payroll provider or spits out a clean file you can drop in.
- Reporting and compliance records: The Department of Labor requires you to keep payroll records and time data for multiple years. A strong reporting feature within your overtime tracking software gives you audit-ready documentation at the click of a button.
The 6 best overtime tracking software
With dozens of tools on the market, narrowing down the right fit can feel overwhelming. To help, we’ve pulled together six of the best overtime tracking software options. Each has standout features and proven reliability for businesses that need to keep labor costs under control.
1. Buddy Punch – Best overtime tracking software for affordability and ease of use
Buddy Punch is built for small and mid-sized businesses that need overtime tracking without enterprise-level pricing. Where some tools pile on features you’ll never need – and make the user interface a nightmare to use in the process – Buddy Punch focuses on doing the essentials right.
With Buddy Punch you can track time, calculate overtime, create work schedules and run payroll all at one of the lowest per-user costs on the market.
Overtime controls that prevent surprises
Buddy Punch gives managers guardrails that competitors often charge extra for.
You can customize overtime rules to conform to your company policies and adhere to local, state, and federal laws.
Once the rules are in place, you can set alerts so managers get emails or push notifications when someone is about to hit overtime, so they can adjust shifts before costs spike.
With Buddy Punch’s punch limiting and automatic punch out features, the system will clock employees out automatically at the end of their shift.
Accountability features that keep hours honest
Many tools stop at basic GPS tracking. Buddy Punch layers in multiple protections against time theft
You can see exactly where employees are when they clock in with GPS time stamps, or follow their routes throughout the workday if you need to.
It’s also easy to set up a geofence so employees can’t clock in unless they’re physically at the right job site.
For office teams, Buddy Punch has IP address locks, which restrict clock-ins to your company’s Wi-Fi network.
Flexible punch-in options
Buddy Punch stands out for how flexible it is at capturing time. You can use iOS or Android mobile phones, set up a tablet kiosk with a QR code or pin, or text-to-punch or group punch.
That last feature is especially useful for construction crews, field teams, or seasonal workforces operating somewhere with spotty internet connectivity.
Payroll-ready from day one
Buddy Punch auto-calculates hours, overtime, PTO, and custom pay rates for you. Then you can push that data directly to your preferred payroll provider. Or, skip the third-party and use Buddy Punch’s built-in payroll service.
Pricing
Buddy Punch plans start at $4.49 per user per month. That makes it one of the most affordable overtime tracking solutions on the market, especially given its depth of features. It also offers a free trial so you can take it for a spin before purchasing.
2. QuickBooks Time – Best overtime tracking software for QuickBooks users
QuickBooks Time is designed for businesses that already use QuickBooks Payroll or QuickBooks Online. Its strength is tight integration. Tracked hours, overtime, and paid time off flow directly into payroll and accounting without extra steps. For teams already in the Intuit ecosystem, that convenience is hard to beat.
On the overtime front, you can configure custom overtime policies and rely on the system to apply them consistently. Alerts and notifications let managers know when employees are nearing overtime. That way, they can make scheduling adjustments before costs pile up.
Beyond overtime, QuickBooks Time comes with a robust scheduling and time management toolkit. Managers can create and share schedules, track time off, and run customizable reports to monitor labor costs.
The system also offers a time kiosk mode where employees clock in at a shared device. This feature includes optional photo attachments for additional accountability.
The trade-off is cost. QuickBooks Time’s per-user pricing runs higher than competitors, and many of its more advanced overtime and accountability tools, like geofencing and timesheet signatures, are locked behind the Elite plan. For small businesses that don’t already use QuickBooks, that can make it a tough sell.
But, for companies already embedded in Intuit’s ecosystem, the tight integration can outweigh the extra cost.
Key features
- Scheduling and time-off management
- Alerts and notifications when employees approach overtime
- Time kiosk with optional photo verification
- Mileage tracking
- Project estimates vs. actuals
- Timesheet signatures
- Geofencing
Pricing
The Premium plan starts at $20/month plus $8 per user. The Elite plan starts at $40/month plus $10 per user.
3. Deputy – Best overtime tracking software for shift-heavy scheduling and compliance
Deputy is a full workforce management system designed for industries where schedules and compliance rules are constantly shifting – think healthcare, retail, and hospitality.
For businesses that need to forecast demand, manage labor costs, and stay compliant with complex laws, Deputy is one of the most advanced options on the market.
Deputy lets you set rules for overtime, breaks, premium pay holidays, and shift differentials, then applies them automatically across schedules and timesheets.
Managers get alerts when someone is approaching overtime, or when schedule changes could trigger predictability pay penalties.
The system can be set up so employees must give consent for clopenings (back-to-back closing and opening shifts) or other last-minute schedule changes that might run afoul of state labor laws. Deputy also stores those records for future compliance audits.
What sets Deputy apart is its demand forecasting and scheduling intelligence. The software pulls data from sales, appointments, or delivery trends to predict staffing needs. From there, you can auto-generate optimized schedules that balance labor costs, coverage, and compliance.
Managers can still adjust shifts manually, but AI-driven schedules can save hours of admin time and reduce the risk of overstaffing or overtime spikes.
Employees can clock in via mobile, desktop, or a central kiosk with photo verification. A real-time dashboard shows managers who’s late, who’s on break, and who can’t make their shift. Managers can also broadcast announcements, share documents, and require confirmation that employees have reviewed those documents.
Deputy is one of the more expensive overtime tracking solutions, and many of its features are overkill for the needs of small businesses. But if you have fluctuating demand, multiple locations, or strict compliance requirements, Deputy might be a good fit.
Key features
- Custom overtime, break, and premium pay rules
- Demand forecasting based on sales, delivery, or appointment data
- AI-powered auto-scheduling to optimize labor costs and coverage
- Real-time dashboards showing attendance and shift status
- Shift swapping
- Communication hub for announcements, documents, and confirmations
Pricing
Deputy costs $7.25 per user per month. Additional HR tools are $2 per user per month, and analytics and reporting costs $1.50 per user per month.
4. Homebase – Best overtime tracking software for retail and restaurant teams
Homebase is built for service businesses like restaurants, retail shops, salons, and any company where hourly teams are constantly trading shifts and working with POS systems.
Unlike most overtime tracking tools that charge per user, Homebase prices by location. That makes it very affordable if you have one site with many employees — not so much if you have multiple franchises.
For overtime tracking, Homebase handles the basics well. You can set break and overtime rules according to federal, state, and local laws and the system automatically calculates hours and wages. It also generates alerts when employees approach overtime. Managers can use punch limits and auto-clock outs to prevent early clock-ins or forgotten punches. All timecards, and any edits made, are stored for compliance.
Scheduling is where Homebase shines, but you’ll have to pony up for the higher tiers to gain access to all the features. Managers can build schedules using templates or auto-scheduling tools, publish them instantly via text, email, or app notification, and push reminders to employees before shifts. Availability and time-off requests flow directly into the schedule, so managers aren’t juggling texts or (shudder) sticky notes. Employees can swap shifts or claim open ones directly in the app.
Because it integrates directly with POS systems like Square, Clover, and Toast, Homebase lets managers tie sales forecasts to labor targets. That helps prevent overstaffing and avoid unnecessary overtime in the first place. You can even adjust staffing mid-shift by monitoring real-time dashboards that show labor costs versus sales.
Higher tier plans include tip management, payroll, hiring, onboarding, PTO tracking, and even access to HR advisors.
That makes Homebase one of the most comprehensive small-business platforms on this list. But it’s also where the main drawback comes in: many features competitors include in entry-level plans — like payroll and advanced scheduling — are locked behind higher Homebase tiers or paid add-ons. The pricing structure can quickly become complicated, and businesses often need to upgrade sooner than expected to unlock the tools they really need.
Key features
- Automatic overtime, break, and wage calculations
- Overtime and late arrival alerts
- Scheduling templates
- Shift swapping
- POS integrations
- Communications hub
- Labor cost vs. sales tracking
Pricing
Homebase includes one location with up to 10 employees for free. Paid plans start at $30 per location per month and climb to $120 per month. To get payroll, you’ll need a $39/month add on plus $6 per month per employee.
5. Connecteam — Best free overtime tracking software for very small teams
Connecteam markets itself as an “all-in-one” employee app, but the heart of its overtime and attendance tracking lives in its “Operations Hub”. This hub combines time tracking, scheduling, and task management into a single interface, making it appealing to businesses that want everything in one place without stitching together multiple apps.
The time clock feature gives employees an easy way to log hours on mobile devices with GPS tracking to verify punch ins.
Managers can monitor attendance in real time and get notified of late or missed punches. Timesheets are automatically generated, with built-in checks for errors or inconsistencies.
Payroll-ready exports make it simple to process pay runs, or you can integrate directly with providers like Gusto and QuickBooks.
On the scheduling side, Connecteam offers drag-and-drop scheduling, open shifts, shift notes, and basic templates. It also includes compliance checks, like flagging errors for double-bookings or violations of labor rules.
Schedules are instantly shared with employees, who can confirm their shifts in the app.
For task-heavy businesses, managers can attach checklists or assignments to shifts so staff know exactly what to do when they clock in.
The downside of Connecteam is its tiered access. To unlock many practical features, like auto clock-outs, customizable time clock settings, geofencing, shift templates, repeating shifts, and more, you’ll need one of the advanced plans.
Connecteam stands out for its free small business plan for up to 10 users but, for growing teams, the costs climb quickly.
Key features
- Mobile time clock with GPS tracking
- Real-time attendance monitoring
- Digital timesheets with payroll exports and integrations
- Scheduling with open shifts, templates, and error flagging
- Attach notes, tasks, and checklists to shifts
Pricing
Connecteam is free for up to 10 users. Paid plans start at $29 per month for 30 users, and $1 per user after that.
Advanced features like geofencing and auto clock-outs require the $59 per month plan, which includes a $3 per user surcharge after the first 30 users.
Connecteam’s highest plan is $119 per month, and an additional $5 per user beyond 30 employees.
6. When I Work – Best overtime software tracking for phone-first operations
When I Work is built for shift-based teams that live on their phones.
Managers get fast, template-driven scheduling from the web or app. Employees confirm their shifts, trade coverage, and see updates instantly from their mobile devices.
If you’ve been herding cats via group texts and spreadsheets, When I Work will feel like night and day.
Overtime prevention is baked into When I Work’s flow. As you build the schedule, the app flags conflicts and warns when an assignment would push someone into overtime. During the week, it keeps watch with alerts, thresholds, and limits so you can rebalance coverage before overtime hits.
Pair the schedule with the time clock and you get a tighter loop: prevent early clock-ins with geofencing, require photo clock-ins at a kiosk or mobile, and see who’s late or missed a punch in real time.
When I Work’s scheduling tools are strong. Its auto-scheduling feature can create a full week’s coverage in one click using availability, qualifications, and fairness rules. You can copy last week, build templates, and post open shifts
You can also manage multiple locations and remote job sites with When I Work, but be warned the price per user doubles.
Managers can also attach task lists to shifts so teams know exactly what “done” looks like when they clock in.
When I Work also has some labor forecasting features so you can compare planned vs. worked hours and track labor spend by position, location, or job site.
Key features
- Auto-scheduling
- Schedule templates
- Geofencing and photo clock-in
- Overtime alerts
- Real-time attendance dashboard
- Labor forecasting
Pricing
When I Work offers a single location or schedule for $2.50 per user per month.
To unlock multiple locations or schedules, custom reporting, role permissions, and time zone support, you’ll need to pay $5 per user per month.
Choosing the best overtime tracking software for your company
The best overtime tracking software isn’t necessarily the one with the longest feature list.
Instead, find the time tracking tool that fits your workflows, keeps you compliant, and helps you control labor costs without creating extra headaches for your managers or employees.
Start with the must haves. Every business needs accurate overtime calculations, alerts before employees cross into overtime, and clean reports for payroll and compliance. If a tool doesn’t cover these basics, move on.
Then, look at your operational needs. Do you run multiple locations? Rely on mobile or field workers? Need to comply with industry-specific labor laws? Features like geofencing or advanced scheduling may be non-negotiable in your case.
After you’ve whittled down your list based on their feature sets, it’s time to talk turkey. Some platforms, like Buddy Punch, price affordably for small businesses. Others, like QuickBooks Time, can get expensive as you add users or unlock higher tiers. Pay close attention to which features are included at each plan level, since many providers keep advanced tools behind premium pricing.
Finally, don’t skip the test drive. Most vendors offer free trials. Use them. Have managers and frontline employees actually clock in, approve timesheets, and run a payroll export. The right software should feel natural to use or adoption will be an uphill battle.
By narrowing your shortlist based on needs, operational considerations, and budget, then validating your choice with a trial, you’ll land on overtime tracking software that keeps your labor costs under control and gives you confidence in every payroll run.
