Non-exempt time records need daily and weekly precision. Everhour supports team policies for cleaner payroll and billing review.
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This page is for separating exempt and non-exempt time records before payroll, billing, or audit review. Covered employers under the FLSA must keep accurate records for non-exempt workers, including hours worked each workday and total hours worked each workweek. The FLSA does not require one specific timekeeping form or system, but the method must be complete and accurate.
Exempt employees usually do not need overtime calculations under the FLSA, but employers still track their time for project budgets, client billing, capacity planning, leave, or internal reporting. Non-exempt employees need time records that support wage and overtime review. Mixing both groups in one loose weekly total creates avoidable cleanup because payroll needs classification, workweek totals, and daily detail for covered non-exempt employees.
A usable non-exempt time record shows the employee, classification, date, workweek, daily hours worked, total hours worked each workweek, project or task, and billable status when client billing applies. For U.S. payroll and billing, rate fields normally use U.S. dollars. Comments should explain corrections, missed punches, or manager-approved changes without collecting personal details that the business does not need.
The FLSA workweek is a fixed, regularly recurring period of seven consecutive 24-hour periods, totaling 168 hours. Covered non-exempt employees must receive overtime pay for hours worked over 40 in a workweek at not less than one and one-half times the employee's regular rate of pay. Hours cannot be averaged across two or more workweeks for FLSA overtime purposes.
The common mistake is treating exempt and non-exempt time as the same record type. A project manager's weekly capacity entry may work for planning, while a non-exempt technician's record needs daily hours and weekly totals. Covered non-exempt employees also need records that separate hours actually worked from paid time not worked when payroll rules, policies, or contracts require that distinction.
Weekend and holiday labels deserve care. The FLSA does not require overtime premium pay solely for Saturday, Sunday, holiday, or regular rest-day work unless the weekly overtime rule is triggered or another law or agreement applies. State wage, overtime, privacy, and employee-monitoring rules can add requirements, so a good setup leaves room for jurisdiction and policy notes instead of forcing every unusual day into a federal overtime bucket.
A free weekly total works when you need a quick estimate, a draft invoice backup, or a small internal check. A managed workflow becomes necessary when multiple classifications, approvals, corrections, locked periods, and payroll handoffs are involved. Covered employers also need retention discipline: payroll records must be preserved for at least three years, and basic time and earnings records, such as daily start/stop time cards or sheets, for at least two years.
Everhour Team Management fits the durable workflow side: admins can set lock rules, correct time for team members, define weekly capacity, use approval workflows, assign roles, and organize teams into groups. That structure keeps exempt planning time and non-exempt payroll review in the same operating system while preserving the controls managers need before reports, billing, or payroll use the data.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Exempt employees can track time for project costing, client billing, capacity planning, or leave records. The FLSA recordkeeping issue is different for non-exempt workers because covered employers must keep accurate daily and weekly hours for employees covered by minimum wage or overtime provisions. Internal policy, contract terms, grant rules, or client billing terms can still require exempt time records.
For employees covered by the FLSA minimum wage or overtime provisions, employer records must include hours worked each workday and total hours worked each workweek. The system can be paper, spreadsheet, app-based, or integrated with project work, as long as the records are complete and accurate. Payroll records must be kept for at least three years, and basic time and earnings records for at least two years.
A weekly total alone misses a required detail for covered non-exempt employees because records must include hours worked each workday and total hours worked each workweek. Daily entries also make corrections easier when a shift spans projects, a timer was missed, or a manager needs to review whether weekly hours exceeded 40.
Weekend work does not automatically create overtime under the FLSA. Covered non-exempt employees must receive overtime pay for hours worked over 40 in a workweek, at not less than one and one-half times the employee's regular rate of pay. A state rule, employment agreement, union contract, or company policy can add a premium for weekends or holidays.
A shared tracking system works if it supports different fields, approvals, and review rules by worker group. Non-exempt records need daily hours and weekly totals for covered FLSA recordkeeping, while exempt records often serve budgets, billing, or capacity planning. Access controls also matter because time records contain employee data, and businesses handling personal information must avoid unfair or deceptive practices and keep sensitive information secure.
Everhour Team Management lets admins set lock rules, weekly capacity, approval workflows, roles, project assignments, and team groups. That helps managers review non-exempt time before payroll while still using exempt time for planning, budgets, and project reporting.
Everhour allows admins to edit time for team members, so payroll or billing corrections can be cleaned up without repeated back-and-forth. Submitted and approved time can be protected from edits, which keeps reviewed records stable after managers approve them.
Set team rules, approvals, capacity, and locked periods before time reaches payroll or billing. Everhour Team Management gives classification-aware teams cleaner records and stronger review control.
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