Time Tracking: Tools, Methods, and Remote Work Considerations
The practice of recording hours worked, either for billing clients, measuring productivity, or ensuring compliance with labor laws, using manual timesheets or automated software.
What is Time Tracking?
Time tracking is the systematic recording of hours spent on work tasks, projects, or for clients. In remote work contexts, this practice helps organizations manage billable hours, monitor project progress, and ensure accurate payroll. Time tracking can range from simple manual timesheets to sophisticated automated software that tracks activity in real-time. While it’s essential for contractors billing by the hour, many salaried employees also use time tracking for project management and productivity insights.
Definition
Time tracking is the practice of recording hours worked, either for billing clients, measuring productivity, or ensuring compliance with labor laws, using manual timesheets or automated software.
Key Facts
- Mandatory for Hourly Workers: Most hourly employees and contractors are required to track time for accurate billing and payroll purposes.
- Project Management Tool: Time tracking helps teams understand how long tasks actually take versus estimates, improving future planning.
- Multiple Methods Available: Options range from simple spreadsheets and manual punch cards to automated desktop and mobile applications.
- Privacy Considerations: Modern time tracking exists on a spectrum from basic hour logging to invasive surveillance software that monitors keystrokes and screenshots.
- Remote Work Standard: Time tracking has become more prevalent with distributed teams, though its implementation varies widely by company culture.
When Time Tracking is Required
Contractors and Freelancers
Independent contractors who bill clients by the hour must maintain detailed time records to justify invoices and provide transparency. Many clients require specific time tracking software to monitor project budgets.
Hourly Employees
Hourly workers, whether remote or in-office, are legally required to track their hours for wage and hour compliance. Employers must maintain accurate records for payroll and to comply with labor laws like the Fair Labor Standards Act (FLSA).
Salaried Employees
While not always required, many salaried employees use time tracking for project-based work, especially in consulting, legal, or agency environments where client billing is involved. Some companies also use it for internal resource allocation and workload balancing.
Time Tracking vs Surveillance
There’s an important distinction between legitimate time tracking and invasive employee surveillance. Reasonable time tracking focuses on recording hours worked and project time allocation. It respects employee privacy and operates transparently.
In contrast, surveillance software may include screenshot monitoring, keystroke logging, webcam activation, or mouse movement tracking. These practices can erode trust, damage company culture, and raise serious privacy concerns. Many remote workers consider excessive monitoring a red flag when evaluating employers.
Organizations should be transparent about what’s being tracked, why it’s necessary, and how the data will be used. The best time tracking implementations focus on outcomes and project management rather than micromanagement.
Popular Tools
Toggl Track
A user-friendly time tracking tool favored by freelancers and small teams. Features include one-click timers, project categorization, and detailed reporting. Offers both free and paid tiers.
Harvest
Combines time tracking with invoicing and expense tracking, making it ideal for consultants and agencies. Integrates with popular project management tools and accounting software.
Clockify
A free time tracking solution with unlimited users, making it popular for growing teams. Includes timesheet capabilities, project tracking, and basic reporting features.
Other Notable Options
- RescueTime: Automatic time tracking that runs in the background, focusing on productivity insights
- Timely: AI-powered automatic time tracking that learns your work patterns
- Hubstaff: Includes optional activity monitoring features alongside time tracking
Frequently Asked Questions
Is time tracking legal for remote employees?
Yes, employers have the legal right to track employee work hours, especially for hourly workers. However, the methods used must comply with privacy laws, and employees should be informed about what’s being tracked.
Can I refuse to use time tracking software?
If you’re an hourly employee or contractor billing by the hour, time tracking is typically a job requirement you cannot refuse. However, you can push back on invasive surveillance features that go beyond simple hour logging. Salaried employees may have more flexibility depending on company policy.
How detailed should my time tracking be?
This depends on your role and employer requirements. Contractors often need detailed task-level tracking for client billing. Employees might only need to log hours by project or general categories. Always clarify expectations with your employer or client.
Does time tracking improve productivity?
Research shows mixed results. Time tracking can improve productivity by revealing time wasters and helping with task estimation. However, excessive monitoring can reduce morale and creativity. The key is using time tracking as a planning tool rather than a surveillance mechanism.
Last Updated: 2026-01-20