Time theft occurs when employees are compensated for hours they didn't actually work, which can negatively impact a business's productivity and payroll costs.
Common examples include "buddy punching" (where one employee clocks in/out for another), engaging in personal activities during work hours, or inflating reported work hours on timesheets.
Time theft can be considered a form of payroll fraud; therefore, many employers implement tracking tools like timesheet software or biometric clock-ins to mitigate its impact and ensure accountability.
