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Construction time theft

Close the gaps in paid time without treating your crew like suspects.

Construction time theft is paid time that wasn't worked: late starts written as on time, early finishes, rounding that only goes one way, long breaks and supply runs that stretch. It is usually small and spread across a crew, and the same gaps also cut hours people did work. ZeroBadge records each shift from power-on to power-off and splits every minute into on site, in transit or other, so the office reviews gaps from a record instead of a hunch.

Treat it as a record problem first. Most of the gap is rounding, memory and habit, and the fix should be fair to the crew.

  • Late starts and early finishes flagged, ask ZeroBadge AI
  • Every minute on site, in transit or other
  • Corrections logged with a reason

Tue Oct 6

6:30 AM3:50 PM
SODOEast WaterwaySR 991st Ave S4th Ave SI-5S Lander St1 · SHOP & OFFICE6:30 AM · 25M2 · RIVERSIDE7:35 AM · 45M3 · CASCADE SUPPLY8:45 AM · 25M4 · HARBOR YARD9:40 AM · 6H 10MLena
Lena · route
  1. 6:30 AMShop & OfficeClocked in at the shop, loaded fittingsOn site · 25m
  2. 6:55 AMTransit to RiversideDrive to Riverside Medical PavilionTransit · 40m
  3. 7:35 AMRiverside Medical PavilionCrew hand-over with Marcus T.On site · 45m
  4. 8:20 AMTransit to Cascade SupplyDrive to Cascade Supply Co.Transit · 25m
  5. 8:45 AMCascade Supply Co.Vendor stop: valve pickupVendor · 25m
  6. 9:10 AMTransit to Harbor YardDrive to Harbor YardTransit · 30m
  7. 9:40 AMHarbor Yard Distribution CenterOn site with the Harbor Yard crewOn site · 6h 10m
One shift from 6:30 AM to 3:50 PM.

Where paid time leaks

Paid time leaks in small pieces at the edges of the day.

Nobody writes down a 12-minute late start. It becomes 7:00 on Friday's sheet, and twenty workers doing the same thing adds up to real hours.

  • Late starts written as on time

    A 7:12 arrival becomes 7:00 on the sheet. On a paper week, the foreman fills in what the day usually looks like.

  • Early finishes

    Tools down at 3:05 and in the truck by 3:15, with 3:30 on the timesheet because that's when the shift ends.

  • Rounding that only goes one way

    Starts rounded back to the quarter hour and finishes rounded forward. Each round is a few minutes. The direction is what matters.

  • Long breaks

    A half-hour lunch that runs fifty minutes because the taco truck had a line and nobody was watching the clock.

  • Stretched supply runs

    A 20-minute run to the supply house that takes an hour and a half, with a stop at the bank on the way back.

It runs both ways

The same gaps that overpay can also underpay.

A timekeeping problem is not a one-sided problem. The record that shows a long lunch also shows an unpaid early start.

  • Rounding

    When it overpays

    Starts always rounded back, finishes always rounded forward

    When it underpays

    An early start at 6:52 rounded to 7:00 every day

  • End-of-week memory

    When it overpays

    A late Tuesday remembered as on time

    When it underpays

    A 6:30 start at the shop remembered as 7:00 at the site

  • Before the shift

    When it overpays

    Clocked in, then coffee before work starts

    When it underpays

    Loading the truck at the shop before anyone writes a start time

  • Breaks

    When it overpays

    A 30-minute lunch that runs 50

    When it underpays

    A lunch deducted every day, including the days it wasn't taken

  • Supply runs

    When it overpays

    A run that includes a personal stop

    When it underpays

    A run after the last site that never makes the sheet

  • Missing punches

    When it overpays

    A forgotten clock-out filled in late

    When it underpays

    A forgotten clock-in filled in at the scheduled time after an early start

Underpaid hours are a liability of their own. Federal recordkeeping rules ask employers to keep hours worked each workday and each workweek ([29 CFR 516.2(a)(7)](https://www.ecfr.gov/current/title-29/section-516.2)), and a record that only catches one direction isn't doing that job.

Size it with your own numbers

Six minutes a day, worked through with assumptions you can change.

There is no reliable industry figure for construction time theft, so this uses inputs, not averages. Every value marked as an assumption is a placeholder. Swap in your own and redo the line.

  • Unrecorded gap per worker per day (assumption)

    Arithmetic

    6 minutes

    Result

    0.1 hours

  • Per worker per week

    Arithmetic

    0.1 h × 5 days

    Result

    0.5 hours

  • Across the crew (assumption: 20 workers)

    Arithmetic

    0.5 h × 20

    Result

    10 hours a week

  • At a loaded labor rate (assumption: $45 an hour)

    Arithmetic

    10 h × $45

    Result

    $450 a week

  • Over a working year (assumption: 48 weeks)

    Arithmetic

    $450 × 48

    Result

    $21,600 a year

These are assumptions, not findings about any company. If those six minutes run the other way, as unpaid early starts or skipped lunches still deducted, the same arithmetic is wages owed to the crew. For a fuller estimate with your own inputs, use the [unclear labor hours calculator](/solutions/construction-payroll-losses).

Rounding and breaks

Federal rules accept rounding only when it evens out over time.

Under 29 CFR 785.48(b), recording start and stop times to the nearest 5 minutes, tenth or quarter of an hour is accepted for enforcement purposes, provided it does not, over a period of time, result in failing to pay employees for all the time they actually worked. A rule that only ever rounds in the company's favor fails that test. Breaks matter too: rest periods of about 5 to 20 minutes must be counted as hours worked (29 CFR 785.18), while a bona fide meal period, ordinarily 30 minutes or more with the worker completely relieved from duty, is not work time (29 CFR 785.19). So a 15-minute coffee break is paid time, not a gap. Some states are stricter than the federal rules.

Sources: 29 CFR 785.48, 785.18 and 785.19 (eCFR). This is general information, not legal advice. Check your state's rules with counsel.

What each method can see

What paper, a site clock, a phone app and a badge show about each gap.

No method sees intent. The useful question is which gaps each one makes visible, and which it hides.

Compare ZeroBadge with

Visibility of common timekeeping gaps by method: ZeroBadge compared with Paper
ZeroBadgePaper
Late starts and early finishes
Flagged against the scheduleWhatever was written
Long lunch off site
Shown as time outside approved sitesNot recorded
Long lunch on site
Looks like time on siteNot recorded
Supply runs
Transit and supplier stops, once suppliers are drawnOne line, or missing
Start and finish times
Kept as recordedRounded by whoever writes them
Early work at the shop
Starts at power-on, wherever that isOften left off

The tradeoff

No system knows why a lunch ran long or a supply run took an hour. A badge shows where the time went and how long it took; a person decides whether it was a problem. A long break taken on the jobsite itself looks like time on site, because it is. Badges are also company hardware that has to be charged, assigned and recovered.

One week, read from the record

Three exceptions from one week, and how each one closed.

Exceptions are questions, not verdicts. None of these turned out to be theft, and that's typical.

  • Monday, 6:40 AM · mechanical rough-in crew

    The foreman's habit was to write 7:00 for everyone. The record shows two apprentices powered on at the shop at 6:40 to load copper and fittings, then drove to the site. That's 20 minutes each of real work paper would have dropped.

  • Wednesday, 11:55 AM · service plumber

    A supply house run shows 25 minutes at the drawn supplier, then 40 minutes outside any approved site before the next job. The plumber's reason: the part was out of stock, so he drove to a second branch. The office draws that branch as a location and clears the exception.

  • Friday, 2:45 PM · drywall finisher

    Badge powered off at 2:45 at the jobsite against a 3:30 schedule, flagged as an early finish. The super had sent him home after the last coat. Marked approved with the reason, hours unchanged.

One exception is a question. A pattern across several weeks is something to talk about privately, with the record in front of both of you.

Fix it fairly

Four steps to close the gap without damaging trust.

Crews accept a record that protects their hours too. They resist one that only looks for reasons to dock pay.

  1. 01

    Measure before you decide

    Run a few weeks of badge records next to your current timesheets. Find out which gaps are real and which direction they run.

    Weeks 1 to 3

  2. 02

    Write the rules down

    Where the shift starts (shop or site), how breaks work, how supply runs are handled and how you round, if you round at all.

    Written policy

  3. 03

    Review with the worker's side

    Clear exceptions with a reason before approval. Workers can see their own hours and request corrections in the optional worker portal.

    Weekly

  4. 04

    Fix the setup before the person

    If supply runs keep landing outside approved sites, draw the suppliers. If lunches run long everywhere, look at the schedule before the crew.

    Ongoing

ZeroBadge AI

Ask ZeroBadge AI about the pattern, not the person

If something looks off, ask ZeroBadge AI for the pattern first. It answers from the badge records with the days listed, so a supervisor can have a fair conversation. It is read-only, and admins control who can see these answers.

  • You ask

    Which workers started late three or more times this month?

    Four of 41. Their late starts ran from 7 to 18 minutes and none fell on a day of approved time off. Each name opens the days so a supervisor can talk it through first.

  • You ask

    Did any badge stay on well past the end of work?

    Three shifts ran more than 2 hours past the scheduled end, and two of them ended outside every approved location. They are flagged for review as possible missed power-offs, not as extra time to pay.

  • You ask

    How much of last week was transit or unverified?

    Transit was 4.1% of paid time and unverified time was 1.8%, about 24 hours. Most of the unverified time was one stretch of missing reports on Wednesday.

Answers come only from your company's own records. Every number links to the records behind it. Read-only; admins control access.

How ZeroBadge AI works

Questions

Questions about time theft on construction crews.

How common is time theft in construction?
There's no reliable published figure for construction specifically, and the percentages repeated online rarely trace back to a primary study. Measure your own: compare a few weeks of badge records with your current timesheets and see which gaps appear and which way they run.
Is rounding employee time legal?
Under federal rules it is accepted if it averages out so employees are paid for all the time they actually work over a period of time (29 CFR 785.48(b)). Rounding that always favors the company does not meet that test, and some states are stricter. This is general information, not legal advice.
Do short breaks count as paid time?
Under federal rules, rest periods of about 5 to 20 minutes are counted as hours worked (29 CFR 785.18). A coffee break is not a gap to recover. State rules on meal and rest breaks vary.
Can a badge tell a long lunch from work?
Only by location. A lunch off site shows up as time outside approved sites. A long lunch on the jobsite looks like time on site, because the badge records where the worker is, not what they're doing.
Should I discipline someone based on badge records?
Treat the record as the start of a conversation, not the end of one. Check the reason, look for a pattern over weeks, follow your written policy and any labor agreement, and apply it the same way to everyone.
Does tracking time this way also protect workers?
Yes. Early starts at the shop, supply runs after the last site and lunches deducted but not taken all show up in the record. Fixing those is part of paying people correctly.

Last updated

Sources

  1. 1.29 CFR 785.48, Use of time clocks (rounding practices) · eCFR, US National Archives
  2. 2.29 CFR 516.2, Employees subject to minimum wage or minimum wage and overtime provisions (records) · eCFR, US National Archives
  3. 3.29 CFR 785.18, Rest · eCFR, US National Archives
  4. 4.29 CFR 785.19, Meal · eCFR, US National Archives

Get started

See where your paid time actually goes.

We'll walk through a week of badge records, the exceptions it raises and how your office would clear them fairly.

What we will walk through

  • 01Late starts, early finishes and time outside approved sites
  • 02Supplier stops drawn as locations
  • 03Corrections with reasons, and the worker portal