Do you need an attendance policy for your small business?  For instance, you may have seen increased absences, or you may need to update your employee handbook. Writing a policy is not difficult. You want to ensure your policy is clear and concise. 

To ensure its effective, you should include the following in your attendance policy:

• Your Expectations: State when your staff must be at work and how you will check attendance.
• How You Will Track Attendance: Explain how to clock in and out, such as using a tool like ezClocker.
• Absences Which Will Be Excused or Not Excused: List what is acceptable and unacceptable to miss work.
• Documentation Needed: Specify what they need to bring, such as a doctor’s note or court summons.
• Disciplinary Action: Explain what happens if they do not follow the policy.

In summary, a good attendance policy should be strict enough for the employer to discipline those with issues. At the same time, it should be flexible enough, so you keep your best workers who rarely miss work. 

Top Reasons for an Attendance Policy

Cost Cutting

First, set up a policy to help cut costs for those missing work. Absences affect your profits. For instance:

• According to the Bureau of Labor Statistics (BLS), 3.1% of workers miss regular workdays in 2024. That’s up from 2.9% before. This shows absences are still a problem.
• Also, according to the CDC’s National Institute for Occupational Safety and Health (NIOSH), 4.7% of workers were out sick or hurt in January 2023. This could mean over $90 billion in lost productivity each year, based on 2024 data. 

Your attendance policy can help you save money. However, you should put in a fair policy. If not, you may lose good workers. 

Increased Communication

Next, your attendance policy can improve communication. You may not know when someone will need to miss work under your current policy. But once you have a policy in place, you will. Without this, you are guessing who will be at work and who won’t.

Managing Offsite Workers

Also, if you have workers scheduled in varying locations, you may need an attendance policy. For instance, a landscape company with teams at many sites must ensure timely arrivals as promised to clients. However, absent or late workers can cost you money and hurt your reputation. So, tracking who’s punctual lets you send your best people to the biggest projects. This also shows your staff that you value top workers. 

Ensures Fairness

Likewise, your attendance policy can help ensure no one is receiving special treatment. Workers who don’t miss work often grow frustrated with team members who are absent a lot. Also, they may have to take on extra duties. Thus, putting a policy in place promotes fairness and supports the morale of those who show up. 

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Disadvantages of Attendance Policy

What are some disadvantages of an attendance policy? 

Enforcing the Policy

First, enforcing a policy can be tricky if it doesn’t fit your team. Thus, you need to plan for all situations. For instance, would you punish a top worker who misses days because of a short-term issue, like a family emergency? A strict policy might cause good workers to leave. You should be aware of issues that may affect your entire workforce. You want to ensure you are fair as well. 

Also, you need managers in place who will enforce the policy. If everyone is not treated the same, you will have more issues. Seek input from your staff. They may bring up ideas or issues that you have not considered.  

Monitoring Offsite Workers

Next, keeping tabs on your offsite workers can be hard if you don’t have the right systems or tools in place. For example, consider investing in a time clock app like ezClocker. The ezClocker app is simple, easy to use, and affordable. In addition, it allows employees to clock in or out using their mobile devices, with a GPS timestamp recorded. This allows you to verify that your employees clocked in and out of the right locations. 

Lastly, recent updates include a geofencing feature. This feature prevents your staff from clocking in or out if they are not within a certain radius of the job site.  Plus, the job tracking feature links hours to specific tasks, so you see costs clearly.

Not Knowing Your Federal and State Laws

Finally, know your federal and state laws when writing your attendance policy. For instance, if you have fifty or more workers, you must follow the Family and Medical Leave Act (FMLA). It provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year. 

Also, if you have fifteen or more employees, you must comply with the Americans with Disabilities Act (ADA) and The ADA Amendments Act of 2008 (ADAAA). As a result, you should know how these laws (and any other laws) can affect your business and your policies. 

In addition, the Pregnant Workers Fairness Act (PWFA), effective 2023, requires accommodations for pregnancy-related conditions. For instance, it covers pregnancy needs, like missing work, for businesses with 15 or more staff. 

As a result, knowing these laws is critical to crafting a compliant policy. Also, research your state and local laws as well. Some states like California have strict laws in place when it comes to managing employees. Some states offer paid sick leave too. Each year, research your laws to stay compliant. 

Attendance Policy Sample

This policy is an example attendance policy for a small business. You may want to use one like this. As stated above, check your local and state laws. You also might want to consult with an attorney. 

Overview

Employees must maintain regular and on-time attendance. This ensures proper staffing and productivity. Employees should get approval from their manager for time off, late arrivals, or early departures.

Communication

Employees must notify their manager if they will be late or absent. Text messages, emails, and voicemails are generally not acceptable. Instead, a phone call is required. For FMLA-related absences, employees should also contact HR.

Point System

The company uses a point system to track attendance:

• Tardiness: 0.5 points (more than 15 minutes late, early departure, or extended breaks).
• Missed Punches: 0.5 points.
• Absence: 1 point.
• No Show/No Call: Three or more days is considered a voluntary resignation.

Disciplinary Action

Points are tracked over a rolling 12-month period.

As a result, excessive absenteeism or tardiness will result in employee discipline up to and including termination. 

6 points = Verbal Warning

9 points = Written Warning

12 points = Final Written Warning

15 points = Termination

Clocking In and Out

Employees must use the company’s time system (e.g., ezClocker). If there are issues clocking in, notify a supervisor immediately.

Excused Absences:

• Work-related injury (with medical proof)
• Jury duty, military leave, or authorized medical leave
• Severe weather conditions
• Pregnancy-related conditions covered under PWFA
• Approved vacation time

You will be consulted about each step and there should be no surprises. If you are unaware of how many times or days you have missed, please contact your manager. 

Other Factors

Do you allow a grace period for clocking in (e.g., 5 minutes)? Do you have any exceptions for emergencies or unforeseen delays? 

Also, require employees to sign that they have received, and understand and agree to a copy of your policy. 

Consider adding an attendance reward system to encourage punctuality. Some companies offer a free lunch, a bonus, or an extra day off. Recognize those that work hard to be at work. 

There are also things you may be able to do to make getting to work easier. Brainstorm and research low-cost ideas to help you. For example, can you help with childcare? Do you know a local daycare? Get input from your staff about their needs. Then, research how you can help. 

Real World Examples

To start, United Parcel Service (UPS), a global shipping company, has a strict attendance policy for its drivers and warehouse staff. Workers must clock in within a five-minute grace period. Tardiness is .5 points, and an unexcused absence is 2 points. 

Vanderbilt University has a policy that employees are expected to report to work as scheduled, on time, and prepared to start working. Also, they should remain at work for their entire work schedule. Late arrivals, early departures, or other absences can be disruptive and must be avoided. Absences are one occurrence. Tardiness or missed clock-ins are considered half an occurrence. 

Final Thoughts

Finally, make sure to explain your new attendance policy to all employees. Allow questions and emphasize why it’s important for productivity and fairness. After implementing the policy, managers should enforce it consistently. Using tools like ezClocker’s GPS time stamp and job tracking features can help ensure compliance and accuracy.

Author: Kimberley Kay Travis

Kim Travis has over 20 years of experience in business, human resource management, and leadership roles. She has specialized knowledge in employment law, employee relations, recruiting, management consulting, small business growth, leadership development, workplace safety and health programs, and writing business content.

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