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MadyHR.ai Free Resources · USA

Free Timekeeping and Overtime Policy Template

If you have hourly (non-exempt) employees, the Fair Labor Standards Act requires you to keep accurate records of hours worked and to pay overtime. This policy sets clear rules for recording time and approving overtime.

Download free (Word .docx) Free · No sign-up · Opens in Microsoft Word and Google Docs · Last reviewed October 2026

Important: please read

This template is a free starting point, not legal advice. MadyHR.ai is not a law firm and cannot give legal advice. Employment law is different in every state, and some cities have their own rules. Laws also change. Before you use this template, check it against the laws where your employees work, and speak to an employment attorney or your state labor department if you are unsure. You use this template at your own risk, and MadyHR.ai accepts no responsibility for how it is used. Links to official government websites are given for information only; MadyHR.ai is not affiliated with or endorsed by any government agency.

When to use this template

  • Any business with non-exempt employees
  • Moving to a new time-tracking system
  • After a pay dispute

Tips before you use it

  • You must pay for all hours worked, even unapproved overtime — you may discipline the employee for breaking the approval rule, but you cannot refuse to pay.
  • Some states (for example California) require daily overtime or have stricter rules than the FLSA.
  • Keep payroll records for at least three years and time cards for at least two years under the FLSA.
Rules in your state may differ. Federal law sets the minimum. Your state — and sometimes your city or county — may add extra rules on this topic. Check with your state labor department before you use this template. Find your state labor office (U.S. Department of Labor)

Template preview

Replace everything in [brackets] and delete the notes for employers before you use it. The Word download contains the full template.

[Company Name]

Timekeeping and Overtime Policy

This policy applies to all non-exempt employees of [Company Name].

Recording your time

  • Record the exact time you start and finish work, and the start and end of any unpaid meal break, using [Timekeeping Method].
  • Only record your own time.
  • Check your hours at the end of each pay period and tell [Manager Name or Title] about any mistakes right away.

No off-the-clock work

Never work off the clock. This includes answering emails or calls, setting up or closing down, or working through a break without recording it. If anyone asks you to work off the clock, report it to [HR Contact Name].

Workweek and overtime

Our workweek runs from [Workweek Start Day and Time] to [Workweek End Day and Time]. Non-exempt employees are paid overtime of at least one and a half times their regular rate for hours worked over 40 in a workweek, and as otherwise required by state law.

Overtime approval

Overtime must be approved in advance by your manager. If you work overtime without approval, you will still be paid for it, but you may be subject to discipline for not following this policy.

Breaks

[Describe meal and rest breaks required by your state, or delete.] Short rest breaks of 20 minutes or less are paid time.

Pay corrections

If you believe you have been underpaid or an improper deduction has been made, tell [HR Contact Name]. We will investigate and correct any error promptly, and we will not retaliate against you for raising it.

This policy is not a contract of employment and does not change the at-will nature of employment with [Company Name]. [Company Name] may change this policy at any time, and will apply it in line with federal, state and local law.

I have received and read this policy, and I understand it.

Employee
Signature
Date

Frequently asked questions

When is overtime due under federal law?

Under the FLSA, non-exempt employees must be paid at least one and a half times their regular rate of pay for hours worked over 40 in a workweek. Some states also require daily overtime.

Do I have to pay overtime I did not approve?

Yes. If the employee worked the hours, they must be paid for them. You can enforce your approval rule through discipline, but not by withholding pay.

Official sources

Each source below is an official U.S. government website. Check them for the latest rules.

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