Time clock and overtime laws in the United States (2026)
What US employers need to know about overtime, recordkeeping, retention and biometric time clocks, with sources.
Time clock rules at a glance
| Topic | What the rules say |
|---|---|
| Overtime (federal) | The FLSA sets no daily or weekly maximum for adults. Non-exempt employees earn 1.5x their regular rate after 40 hours in a workweek; California and some other states also require daily overtime. |
| Recordkeeping | Required. 29 CFR Part 516 (§516.2) requires employers to record hours worked each day and each workweek, pay rates, overtime, deductions and payments. |
| Retention | 3 years for payroll and core records (§516.5); 2 years for time cards and supplementary records (§516.6). |
| Electronic time clocks | No federal certification. Electronic records are allowed if accurate and accessible. Some states regulate time rounding and meal breaks (for example, California). |
| Biometric data | No general federal law. State biometric laws apply, such as Illinois BIPA (written notice, retention policy and written release before capture), Texas CUBI and Washington RCW 19.375. California CCPA/CPRA covers employee data since 1/1/2023. |
Reference information as of November 2, 2026. Not legal advice: confirm with your employment counsel and your state rules.
How Alobri Time helps you comply
- Daily and weekly hours with server time and a full edit audit trail.
- Overtime after 40 hours calculated automatically, with daily rules where your state needs them.
- Records exportable for payroll and audits.
- Notice and consent flow before enabling facial recognition or location.
Keep reading
Frequently asked questions
Do I have to track employee hours in the US?
Yes, for non-exempt employees. Under 29 CFR Part 516, employers must record daily and weekly hours worked, pay rates and overtime, and keep payroll records for 3 years and time cards for 2 years.
When is overtime due under federal law?
After 40 hours in a workweek, at 1.5 times the regular rate. Some states, such as California, also require daily overtime.
Can I use facial recognition for time clocks?
Yes, but state biometric laws apply. In Illinois (BIPA) you need written notice, a public retention policy and a written release before capturing biometric data; Texas and Washington have their own rules.
Book a demo with a specialist
Tell us your headcount and locations and a specialist will contact you today. After you submit, pick a day and time for a 30-minute video call.
- WhatsApp +52 56 5254 8451
- contacto@alobri.com