Why You Need a Time Clock

Every medical office, even the smallest, should have a time clock, but a surprisingly large percentage of them do not. Although it is hardly a new innovation—the first commercial time clocks were built in the early 20th century by the company that later became IBM—the medical profession has been slow to adapt to this basic business practice.

There are two very good reasons why you should have a time clock. The first is obvious: to punch your employees' time cards. This is essential even if all your employees are paid weekly or semiweekly rather than by the hour.

The other (and possibly more important) reason, which we will come back to, is to punch in your patients.

In most states, any employee who works more than 40 hours in a given week must be paid overtime wages. Employees know this, and disgruntled ones have been known to file complaints stating that they worked hundreds of hours of unpaid overtime.

This may be completely untrue, but labor boards almost invariably side with employees in such disputes, unless the employer can produce time records that disprove the claim. A time clock is cheap insurance against a large, unexpected, and possibly unjustified payment to a former employee.

For part-time, hourly-wage employees, time records are even more important, as you obviously want to pay them only for the hours they work. If you are paying your part-timers for the number of hours they should be working without documenting how many hours they actually work, you could be paying for a lot of nonwork. Employees have little incentive to arrive on time, or to stay the entire length of their shifts, if they know they are being paid for a set number of hours anyway. And they certainly will balk at staying late if they can't count on being paid for the extra time.

Time clocks also work to the advantage of your employees: Since they will be paid only for the time they work, they will be paid for all the time they work. If any employees object to your installing a clock, point out that they will be assured of payment for fractional time worked past their usual hours—time which might have gone unpaid before.

As for your patients, a time clock is a great tool in the endless struggle to run on time, as I mentioned in a column addressing that subject 3 years ago. (If you missed “How to Run on Time,” go to www.skinandallergynews.com

As each patient arrives, have your receptionist time stamp the encounter form that goes to the back with the patient's chart. As you take each chart off the door and enter the room, one glance at the time stamp will tell you exactly how long that patient has been waiting.

Now you no longer have to guess how far behind you are—and you'll have an answer for the curmudgeon who insists he's been sitting there for 21/2 hours.

Time/attendance systems range from relatively simple to relatively complex.

My office has had an old-fashioned stamp-type time clock for 26 years, but nowadays you can get something far more sophisticated than that if you wish.

Many of the newer clocks will automatically calculate time between punches and add up total work time, and they can be configured for weekly, biweekly, semimonthly, or monthly pay periods. At least one will automatically deduct break time from the totals.

If you have a problem with “buddy punching” (employees punching in or out for each other), some clocks are equipped to recognize fingerprints or hand contours.

There are also electronic software systems, both Web based and in house, that can be deployed across a local computer network. They will print time sheets with employee hours and earnings calculated, and some will even interface with financial software such as QuickBooks and other third-party payroll services. (As always, I have no financial interest in any product or service discussed in this column.)

If you go the electronic route, make sure the software incorporates security measures to prevent time alterations by unauthorized employees. You can never be too careful.

Every medical office, even the smallest, should have a time clock, but a surprisingly large percentage of them do not. Although it is hardly a new innovation—the first commercial time clocks were built in the early 20th century by the company that later became IBM—the medical profession has been slow to adapt to this basic business practice.

There are two very good reasons why you should have a time clock. The first is obvious: to punch your employees' time cards. This is essential even if all your employees are paid weekly or semiweekly rather than by the hour.

The other (and possibly more important) reason, which we will come back to, is to punch in your patients.

In most states, any employee who works more than 40 hours in a given week must be paid overtime wages. Employees know this, and disgruntled ones have been known to file complaints stating that they worked hundreds of hours of unpaid overtime.

This may be completely untrue, but labor boards almost invariably side with employees in such disputes, unless the employer can produce time records that disprove the claim. A time clock is cheap insurance against a large, unexpected, and possibly unjustified payment to a former employee.

For part-time, hourly-wage employees, time records are even more important, as you obviously want to pay them only for the hours they work. If you are paying your part-timers for the number of hours they should be working without documenting how many hours they actually work, you could be paying for a lot of nonwork. Employees have little incentive to arrive on time, or to stay the entire length of their shifts, if they know they are being paid for a set number of hours anyway. And they certainly will balk at staying late if they can't count on being paid for the extra time.

Time clocks also work to the advantage of your employees: Since they will be paid only for the time they work, they will be paid for all the time they work. If any employees object to your installing a clock, point out that they will be assured of payment for fractional time worked past their usual hours—time which might have gone unpaid before.

As for your patients, a time clock is a great tool in the endless struggle to run on time, as I mentioned in a column addressing that subject 3 years ago. (If you missed “How to Run on Time,” go to www.skinandallergynews.com

As each patient arrives, have your receptionist time stamp the encounter form that goes to the back with the patient's chart. As you take each chart off the door and enter the room, one glance at the time stamp will tell you exactly how long that patient has been waiting.

Now you no longer have to guess how far behind you are—and you'll have an answer for the curmudgeon who insists he's been sitting there for 21/2 hours.

Time/attendance systems range from relatively simple to relatively complex.

My office has had an old-fashioned stamp-type time clock for 26 years, but nowadays you can get something far more sophisticated than that if you wish.

Many of the newer clocks will automatically calculate time between punches and add up total work time, and they can be configured for weekly, biweekly, semimonthly, or monthly pay periods. At least one will automatically deduct break time from the totals.

If you have a problem with “buddy punching” (employees punching in or out for each other), some clocks are equipped to recognize fingerprints or hand contours.

There are also electronic software systems, both Web based and in house, that can be deployed across a local computer network. They will print time sheets with employee hours and earnings calculated, and some will even interface with financial software such as QuickBooks and other third-party payroll services. (As always, I have no financial interest in any product or service discussed in this column.)

If you go the electronic route, make sure the software incorporates security measures to prevent time alterations by unauthorized employees. You can never be too careful.

Every medical office, even the smallest, should have a time clock, but a surprisingly large percentage of them do not. Although it is hardly a new innovation—the first commercial time clocks were built in the early 20th century by the company that later became IBM—the medical profession has been slow to adapt to this basic business practice.

There are two very good reasons why you should have a time clock. The first is obvious: to punch your employees' time cards. This is essential even if all your employees are paid weekly or semiweekly rather than by the hour.

The other (and possibly more important) reason, which we will come back to, is to punch in your patients.

In most states, any employee who works more than 40 hours in a given week must be paid overtime wages. Employees know this, and disgruntled ones have been known to file complaints stating that they worked hundreds of hours of unpaid overtime.

This may be completely untrue, but labor boards almost invariably side with employees in such disputes, unless the employer can produce time records that disprove the claim. A time clock is cheap insurance against a large, unexpected, and possibly unjustified payment to a former employee.

For part-time, hourly-wage employees, time records are even more important, as you obviously want to pay them only for the hours they work. If you are paying your part-timers for the number of hours they should be working without documenting how many hours they actually work, you could be paying for a lot of nonwork. Employees have little incentive to arrive on time, or to stay the entire length of their shifts, if they know they are being paid for a set number of hours anyway. And they certainly will balk at staying late if they can't count on being paid for the extra time.

Time clocks also work to the advantage of your employees: Since they will be paid only for the time they work, they will be paid for all the time they work. If any employees object to your installing a clock, point out that they will be assured of payment for fractional time worked past their usual hours—time which might have gone unpaid before.

As for your patients, a time clock is a great tool in the endless struggle to run on time, as I mentioned in a column addressing that subject 3 years ago. (If you missed “How to Run on Time,” go to www.skinandallergynews.com

As each patient arrives, have your receptionist time stamp the encounter form that goes to the back with the patient's chart. As you take each chart off the door and enter the room, one glance at the time stamp will tell you exactly how long that patient has been waiting.

Now you no longer have to guess how far behind you are—and you'll have an answer for the curmudgeon who insists he's been sitting there for 21/2 hours.

Time/attendance systems range from relatively simple to relatively complex.

My office has had an old-fashioned stamp-type time clock for 26 years, but nowadays you can get something far more sophisticated than that if you wish.

Many of the newer clocks will automatically calculate time between punches and add up total work time, and they can be configured for weekly, biweekly, semimonthly, or monthly pay periods. At least one will automatically deduct break time from the totals.

If you have a problem with “buddy punching” (employees punching in or out for each other), some clocks are equipped to recognize fingerprints or hand contours.

There are also electronic software systems, both Web based and in house, that can be deployed across a local computer network. They will print time sheets with employee hours and earnings calculated, and some will even interface with financial software such as QuickBooks and other third-party payroll services. (As always, I have no financial interest in any product or service discussed in this column.)

If you go the electronic route, make sure the software incorporates security measures to prevent time alterations by unauthorized employees. You can never be too careful.