You’ve probably heard this term a couple of times before. Contrary to how it sounds though, it’s not a new combat sport or a quirky office game.
Buddy punching is when one employee clocks in or out for another, often to cover for them being late, leaving early, or skipping work altogether. It’s a sneaky form of time theft that messes up timesheets, inflates payroll costs, and quietly chips away at productivity and trust in the workplace.
The American Payroll Association (APA) estimates that over 75% of companies lose money from buddy punching.
It’s a more serious problem than most people think. So how does buddy punching even happen? And how do you stop buddy punching for good?
Let’s get into it.
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Is Buddy Punching Illegal?
Yes, buddy punching can be considered time theft or payroll fraud, which means it can cross into illegal territory.
According to Morgan & Morgan, an American law firm, the severity of the penalties for buddy punching depends on the circumstances. If an employee has been committing it for a long time, the consequences can be much harsher. In the U.S., time theft valued at over $1,000 is classified as a felony, punishable by up to ten years in prison and/or a $250,000 fine.
How Does Buddy Punching Happen?
Buddy punching often starts as a “harmless” favor, one worker clocks in or out for another who’s late, leaves early, or skips work. It can happen by sharing swipe cards, PINs, or passwords, and is easier with outdated time tracking systems. Once it starts, it can quickly become a costly habit for the company.
Spotting buddy punching isn’t always straightforward, but there are telltale signs, such as:
- Employees consistently clocking in or out together
- Frequent timecard edits involving the same people
- Identical attendance records for different employees
Effective Ways to Stop Buddy Punching for Good
There’s a number of things you can do to effectively stop buddy punching in the workplace. Here are some proven methods:
1. Create a clear time theft policy
Define clearly what buddy punching is, why it’s not allowed, and the consequences for breaking the rules. Make sure every employee understands the policy from day one. You can introduce this policy during onboarding, include it in the employee handbook, and have staff sign an acknowledgment form.
2. Conduct regular audits
Periodically review time records to catch suspicious activity, like multiple employees clocking in from the same device, identical timestamps, or frequent edits to timecards. Regular checks show employees that attendance is monitored closely, discouraging any attempts to cheat the system.
3. Use a time tracking software with security features
Manual timesheets and traditional punch clocks are easy to manipulate. That’s why it pays to switch to more sophisticated time tracking systems. Don’t just use any time tracking software, choose one that’s equipped with security features that can effectively stop buddy punching.
These features include:
- Facial recognition – Time tracking systems with facial recognition confirms the employee’s identity through a facial scan, ensuring that only the person scheduled can clock in. This effectively eliminates the possibility of a colleague clocking in for them.
- GPS tracking – With the help of GPS tracking, you can log the exact location of clock-ins and clock-outs. This prevents someone from clocking in remotely or outside the workplace and ensures attendance is recorded only when employees are actually on-site.
- Fingerprint authentication – Verifies identity using unique biometric data. A fingerprint can’t be shared or faked easily, making it one of the most secure ways to prevent buddy punching.
Final Thoughts
Buddy punching might seem like a small favor between coworkers, but it can lead to big problems for businesses. The good news is that with the right tools, policies, and clear communication, it’s possible to prevent it altogether. By making time tracking fair, accurate, and transparent, everyone benefits, and workplaces can run more smoothly.
