Specifying Employment Type & Exemptions

The release of TimeClick 18.3.0.0 comes with a lot of new features, improved functionality, and flexibility in the program. Among these changes is an option for specifying employment type, including salaried employees, and creating an overtime exemption for those who meet the Fair Labor Standards Act (FLSA) qualifications for overtime exemption. In this article, we’ll focus on using the current features available for tracking salary and exempt employees as of TimeClick version 2018.3.0.0.

Employment Type

What Employment Types are Used For

The primary purposes of these employment types in the time clock system are to

  1. show the employer the status of each individual, and
  2. inform the admin of the probable reason there are no clock actions logged in a given date range if none show on the report.

For example, if a salaried employee does not clock in and out but still needs to be in TimeClick to appear in CSV or payroll integration exports or simply to manage other employees as a Restricted Admin, you’ll see on their hours report the note that “This employee is a salaried employee with no hours data for this date range.” Seeing that, the admin is quickly reminded that this employee is not supposed to have any hours data because they are salaried and don’t ever clock in or out.

If the employee is set to a different employment type such as “part-time,” and they didn’t clock in or out during the date range, the message will show “No hours data for this date range.” This shows the admin that something is either amiss with that employee completely forgetting to clock in/out or they didn’t show up for that pay period.

Specifying Employment Type

To specify employment type, go into Admin mode and navigate to Employees. Beneath the employee’s name and password information, you’ll see a drop-down menu labeled Select Employment Type.

The available options are full time, part-time, temporary, and salary. An employee paid a salary may or may not track their time and may or may not receive overtime pay again based on salary and responsibilities specified by the FLSA. The tracking of salaried employee time is mostly dependent on the management and payroll process of the company they are working for as long as they are receiving a salary above the minimum required by the FLSA for overtime exemption. If they are making a salary less than $23,600 per year, they will need to track their time because they still qualify for overtime pay.

To have salaried employees who don’t track their time and those who may have forgotten to clock in and out appear on reports, mark the box “Include Employees with 0 Hours” in the Other Settings located in the lower left of the Report Center display. This option will only display active employees, whether they clocked in or not, in the selected employee list unless you specifically tell the report to include terminated employees. Select the employee list you want to run the report for on the right of the report window, the settings, and the needed date range before running the report.

Why Keep Salaried Employees in TimeClick?

Payroll integrations are one example of when a salaried employee who doesn’t punch in or out may be in TimeClick. We’ll look at the example of direct integration with QuickBooks Pro Desktop. Some TimeClick users only track salaried employees’ accrued time (ie. paid time off) data in QuickBooks. When the integration files from TimeClick are imported into QuickBooks, some users prefer having all the employee names appear in the import files to match up with all their active employees in QuickBooks regardless of status to keep consistent with their records. So, if you’re using QuickBooks or another payroll system that imports lists of names and hours from TimeClick and you want all the names imported at once for your convenience, you can have it do so. For more information on tracking salaried employees’ time and whether it’s needed, check out this article.

Creating Overtime Exemptions

To make an employee exempt from overtime pay in TimeClick,

  1. Navigate to Employees in Admin
  2. Double-click on the employee’s name
  3. Enter the employee’s Restrictions in their employee record
  4. Scroll down to Time Actions
  5. Deselect the box “Allow Employee to Earn Overtime”

This option must be turned on or off with awareness and caution. If this box is unmarked, an employee working more than 40 hours in a week will have all their time applied to their regular hours worked and no overtime will display for them. Employees are only exempt from overtime pay if they are earning a salary of $23,600 or more per year and have specific duties falling under the categories of executive, professional, and administrative. To ensure you are correctly changing an employee’s exemption status, please carefully review the FLSA fact sheet on the duties of exempt employees.

Bobby Gailey

Bobby is Head of Sales and Customer Success at TimeClick where he enjoys helping current and aspiring time trackers solve problems. At home, he loves spending quality time with family and friends and nerding out over tech and video games.

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