Buddy punching occurs when an employee asks another employee to “clock-in” for them. It is done through a time stamp clock or even handwriting on a time sheet. It most often occurs when an employee is running late and asks another employee to mark him on-time on the timesheet.
Most employees don’t realize that it’s a form of payroll fraud. It costs U.S. employers more than 373 million dollars annually (2017).
Be sure to add it to your employee manual so employees realize it is considered payroll fraud. Document what will happen if an employee is caught. For example, “An employee shall be subject to disciplinary action up to and including discharge.”
To avoid buddy punching, consider switching to a biometric time clock or individual key cards employees have to swipe to clock-in.
Learn about the time clock options GetPayroll offers.
Interested in creating an employee handbook/policy manual for your company (the answer should be yes!), enroll in our HR services for your Federal and State handbooks. Or, contact us to learn more at 972-353-0000, chat online, or schedule a call.