What is time theft?
Asked by: Kailey Dickinson Jr. | Last update: October 9, 2025Score: 5/5 (50 votes)
Time theft can be categorized as payroll fraud, which occurs when an employee steals funds from a business by falsifying timesheets. Examples could be: An employee clocking in too early or clocking out later than they've actually worked. An employee not working during their scheduled shift.
What counts as time theft?
Bottom line: employee time theft is defined as an employee being distracted, absent, or unproductive during the time they are paid for by their employee. According to recent studies, nearly 45% of employees admit to clocking in or out a few minutes before or after their scheduled break time or shift start.
Is time theft a real crime?
If an employee is committing time fraud, for example, faking timesheets to bill more overtime, then their actions are absolutely illegal. Long breaks, using your smartphone, and other ways to shirk are generally not illegal. However, there is case law supporting claims by employers who try to get payments reimbursed.
What are some real world examples of time theft?
- Exaggerating work hours. ...
- Late arrivals and early departures. ...
- Extended or unauthorized breaks. ...
- Social media usage and personal activities. ...
- Buddy punching. ...
- Create (or update) your employee attendance policy. ...
- Contact the employee privately. ...
- Resort to disciplinary measures as needed.
How common is employee time theft?
Research shows this is all more than just theoretical. A recent survey found 43 percent of employees commit time theft by padding their time cards, 45 percent by recording inaccurate times, 23 percent by buddy punching, and others by using work time for personal activities or frequent breaks.
What is "Time Theft" and Is It a Big Deal?
Can you be fired for time theft?
Yes, you can be fired for time theft. Stealing time at work is considered a form of employee misconduct and violates the trust and expectations set by your employer.
What is the penalty for time theft?
Time theft greater than $1,000 is considered a felony and can be punished with up to ten years in prison and/or a $250,000 fine. These serious instances often involve individuals who have regularly committed time theft at their occupations, not so much the average worker who forgets to clock out here and there.
What is buddy punching?
Buddy punching occurs when one employee asks another employee to clock in on their behalf. In some cases, employee #1 is running late or has not arrived to work at the scheduled time, so they ask employee #2 to clock in for them, in the hopes that the manager or supervisor on duty won't notice the late arrival.
How to deal with employee stealing time?
For example, if time theft is committed and caught, you may follow these guidelines to handle the matter: Verbal warning, written warning, suspension, and termination. Write this out in your time theft policy so that employees know what will happen and when.
What happens if you lie on your timesheet?
Yes, falsifying time sheets is a violation of federal and state law in the US. When an employee commits time fraud, it can lead to job loss and is also punishable by law. In addition to an employment contract getting terminated, a falsified timesheet can also lead to civil liability and criminal charges.
Is it hard to prove time theft?
While employee time theft may be a civil crime, proving that it was deliberate-- the standard for winning such a case--can be extremely difficult with each course being unique of course, and usually hinges on the employee not even being on-site.
What is insubordination?
Insubordination is the act of willfully ignoring, disobeying, or refusing to follow direction from an authority figure or group.
What is a written warning for time theft?
Accurate documentation of the process is crucial when issuing a written warning for an employee stealing time at work. The document should include the name of the employee, the date of the incident, a description of the incident, the level/type of discipline, and the consequences of further violations.
Is sleeping at work time theft?
According to a study by WebMD, the average American sleeps 5.7 hours a night, far less than the recommended eight hours. Some people make up for the lack of sleep by napping during break time. When this spills over into work time, it's time theft.
What is milking the clock?
(idiomatic, colloquial) To use as much time as one can in order to gain a benefit. (idiomatic, colloquial) To squander time while on a shift's punch clock in order to earn more money.
Who investigates time theft?
Time theft, if proven intentional, may have legal consequences beyond disciplinary action by your employer. They may report the matter to authorities such as the Department of Labor, which could result in legal penalties or fines.
How common is time theft?
Depending on the amount of money involved, time theft can even rise to the level of a felony, and it's pretty common across the country. In fact, the American Payroll Association has reported that nearly 75% of American businesses are affected by time theft. A common form of time theft is called buddy punching.
Can a job sue you for stealing time?
A lawsuit to recover damages for time theft might be likely to succeed when the former employee owed a duty of loyalty to the employer, such as a C-suite employee, Busey said. An employer lawsuit alleging time theft could also prevail when the employee submitted reimbursements or charged an employer for personal time.
Can you be fired for buddy punching?
However, in many cases, buddy punching does constitute fraud and is major grounds for employment termination. Most businesses should have policies that outline rules regarding time tracking. Put merely; buddy punching is a dishonest practice and in severe instances, it can be treated as an illegal act.
What is the fist bump buddy?
The "Fist Bump Gun Buddy" is an exclusive item featuring the Riot Games fist logo that cannot be obtained through regular gameplay. Riot Games has previously stated that it can only be acquired through positive interactions with company staff.
Can you terminate for time theft?
However, employees engaging in time theft can still face serious consequences. If an employee engages in time theft by falsifying records or employing fraudulent tactics, they may face disciplinary action, termination of employment, or even criminal charges.
How much is time theft?
According to the American Society of Employers, 20 percent of every dollar earned is lost to employee time theft in the U.S.
Can you get fired for stealing at work?
Theft is a serious accusation. California is an at-will state, and if you are an at-will employee, your employer can fire you without giving a specific reason, even if you believe it is because they suspect you of theft. As an at-will employer, they can fire you for suspected theft even if you did not steal.