Buddy punching is when one employee clocks in or out on behalf of a coworker who is late, absent, or leaving early. The goal is to make it look like the absent employee was present when they were not.
It is one of the most common forms of time theft in the workplace.
How does buddy punching happen?
In workplaces that use card swipes, PIN codes, or paper timesheets, it is easy for one employee to act on behalf of another.
The absent employee tells a coworker their login or PIN, and that coworker clocks them in when they arrive late or before they actually show up.
How much does buddy punching cost employers?
The American Payroll Association estimates that 75% of US businesses lose money to buddy punching. The average loss is around $1,560 per employee per year.
That adds up quickly across a team. A company with 50 employees could lose $78,000 annually just from this one problem.
Is buddy punching illegal?
It violates the Fair Labor Standards Act, which requires employers to maintain accurate wage and hour records. The employer is still on the hook to pay employees correctly, but inaccurate records create legal exposure.
For employees, it can be grounds for immediate termination or, in some cases, disciplinary action for fraud.
What are the best ways to prevent buddy punching?
Technology is the most reliable fix. Physical and digital tools that require individual verification at clock-in make it nearly impossible for someone else to clock in for you.
Prevention method | How it works |
Biometric time clocks | Requires fingerprint or facial scan to clock in |
Geofencing | Clock-in only allowed within a specific location radius |
GPS tracking | Records employee location at clock-in and clock-out |
Photo capture | Takes a photo at each clock-in event |
Clear disciplinary policy | Sets consequences for both the absent employee and the one clocking in |
What should employers do when buddy punching is discovered?
Investigate the situation and document your findings. Talk to both the employee who clocked in and the one who was absent.
Apply your disciplinary policy consistently. Treating buddy punching as a serious offense, even on the first occurrence, sets a clear tone.
Key Takeaways
Description | |
Definition | When one employee clocks in or out on behalf of another |
Cost to employers | Estimated $1,560 per employee per year; 75% of US businesses affected |
Legal concern | Violates FLSA accurate recordkeeping requirements |
Best prevention | Biometric clocks, geofencing, and GPS-based time tracking |
Consequence for employees | Can result in termination or fraud charges |
Frequently Asked Questions
Is buddy punching the same as time theft?
Buddy punching is a specific type of time theft. Time theft is the broader category that includes any behavior where an employee is paid for time not worked.
Can buddy punching happen with remote workers?
Yes. Remote employees can log activity or check in on systems for absent coworkers if proper verification is not in place.
Do both employees get in trouble for buddy punching?
Typically yes. The employee who asked to be clocked in and the one who did it can both face disciplinary action.
What is the cheapest way to reduce buddy punching?
A clear written policy with real consequences costs nothing and is often the first step. Pair it with affordable clock-in software that requires a unique login per employee.
