Timekeeping & Labor Law Compliance: Why It Matters in Federal Contracting
- jessicaq
- 2 days ago
- 3 min read
In the fast-paced world of federal contracting, every hour counts—literally. Whether you're a full-time employee or an independent contractor, your timekeeping practices play a vital role in maintaining legal compliance, billing accuracy, and contractual integrity.
Why Timekeeping Is More Than Just Logging Hours
Timekeeping in the federal contracting space isn’t just an administrative task—it’s a legal and financial obligation. Agencies like the Department of Labor (DOL) and the Defense Contract Audit Agency (DCAA) rely on accurate time records to ensure that contractors are fulfilling terms under the Fair Labor Standards Act (FLSA) and other labor regulations. Improper time tracking can trigger audits, lead to fines, and even jeopardize your company’s ability to win future contracts.
Key Labor Laws to Know
Several federal and state laws govern how time should be tracked and compensated:
FLSA (Fair Labor Standards Act): Sets federal standards for overtime pay, minimum wage, and recordkeeping.
Service Contract Act (SCA): Establishes wage rates and benefits for employees working on federal service contracts.
Davis-Bacon Act: Applies to federally funded construction projects and requires payment of prevailing wages.
State-specific laws: May add rules around breaks, overtime thresholds, and more.
If your company operates across states—or if you’re a remote worker—it’s critical to understand which laws apply to you.
Employees vs. Contractors: Different Rules, Same Importance
Employees are typically required to:
Record actual hours worked daily.
Follow internal policies for leave, breaks, and overtime.
Use company-approved timekeeping systems.
Independent contractors, on the other hand:
Track time or deliverables according to contract terms.
Are not subject to company labor policies but are still bound by contractual expectations.
May invoice by hour, milestone, or project—depending on agreement.
The takeaway? Everyone must track time accurately, but how they do so varies.
Best Practices for Timekeeping Compliance
To stay compliant and audit-ready, here are some practical steps for employees and contractors alike:
Log your time daily. Don’t rely on memory—accuracy is key.
Use the correct labor codes. Match your hours to the project or task you’re working on.
Avoid estimating or rounding. Record time as it is worked.
Certify your timesheet. Confirm it’s accurate before submitting.
Report issues immediately. Whether it’s a technical glitch or an accidental misentry, notify your supervisor or HR.
The Risks of Getting It Wrong
Mishandling timekeeping isn't just a performance issue—it’s a legal one. Non-compliance can lead to:
Contract termination or suspension
Fines and penalties
Negative audit findings
Loss of security clearance or future contract opportunities
Termination of employment or contractor agreement
In some cases, time fraud can even result in criminal charges.
Building a Culture of Accountability
At the end of the day, accurate timekeeping is everyone’s responsibility. By understanding labor laws, following company procedures, and asking questions when unsure, you contribute to a compliant and trustworthy business environment.
If you’re ever uncertain about how to record time or which labor rules apply to you, don’t guess—reach out to your HR or contract administrator.
About EEC Solutions:
EEC Solutions delivers results-driven support services to our global partners, focusing on innovative solutions for professional education, administration, and program management. As a veteran-owned small business, we bring the dedication from our military service to our work, specializing in program management, strategic planning, and human capital. We are committed to exceeding expectations by continually improving our services and fostering strong relationships. With expertise in federal procurement, our team provides efficient, high-quality solutions to government clients.
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