Time-clock compliance isn’t just federal. Many states add their own overtime, meal-break, and recordkeeping rules on top of the FLSA — and getting them wrong is expensive. This guide covers the big ones and how to stop tracking them by hand.
Federal baseline (FLSA)
- Overtime at 1.5× after 40 hours in a workweek
- Recordkeeping — keep accurate time records for 2–3 years
- Rounding allowed if it’s neutral and doesn’t shortchange staff over time
Common state add-ons
- Daily overtime — California pays OT after 8 hours/day and double-time after 12
- Meal & rest breaks — CA, WA, OR, CO and others require unpaid meal periods, with a penalty hour if missed
- Minor (under-18) limits — restricted hours and curfews that change in summer
- Final-pay and record retention rules that vary by state
Our top pick: ClockAll
Hand-applying state rules is where mistakes creep in. ClockAll has a state labor-rule engine that applies daily and weekly overtime, meal-break penalties, and minor-work limits automatically based on each location’s state.
- Stops buddy punching with Face ID and per-person PINs
- Any tablet becomes a kiosk — no proprietary hardware to buy
- GPS & geofencing verify staff are on-site when they punch
- Scheduling, breaks, PTO and overtime built in, not bolted on
- Multiple locations from one dashboard with an audit trail
- Free for your first 3 months, then from $5.99/month
ClockAll is built for small and growing teams that want an honest, simple system without enterprise pricing or clunky hardware.
Frequently asked questions
Is the 7-minute rounding rule legal?
Yes, rounding to the nearest quarter-hour is allowed federally if it’s neutral over time. Many employers skip rounding entirely now that punches are exact.
Which states have daily overtime?
California, Alaska, Nevada and Colorado have daily-overtime rules; most others follow the weekly 40-hour standard.
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