Did you know that chronic lateness annually costs employers $2,945 per employee through lost productivity and coverage issues? Unscheduled absences alone yearly cost companies $3,600 for each hourly worker and $2,650 for salaried staff. When employees arrive late, operations are disrupted, and other team members scramble to cover the gaps.
What you’ll learn
What you’ll learn
Key takeaways
- To avoid confusion, clearly define tardiness with specific timeframes and grace periods
- Include progressive disciplinary steps from verbal warnings to potential termination
- Fairly document all incidents companywide with timestamps and consistent enforcement
- When handling time clock violations, stay compliant with wage and hour laws
And when you only have a few employees, one person’s tardiness has the potential to throw off your entire day. Overtime is frequently used to cover employee absences and late arrivals, driving up costs. In this guide, we’ll cover what a tardy policy is, how it protects your business, and why it goes a long way to set fair expectations for you and your team.
What counts as tardiness? How to clearly define it in the workplace
It may seem obvious to you, but your employee tardy policy starts with a clear definition of what being late means. Most businesses consider employees tardy when they clock in more than five minutes after their scheduled start time. Some companies allow a grace period of seven to 10 minutes, while others enforce strict punctuality.
Consistency matters most. If your policy states that employees must arrive by 9:00 am, then 9:01 am counts as late. Don’t create flexible interpretations that lead to confusion or perceived favoritism. When establishing your threshold, consider your industry, customer needs, and team dynamics.
It makes a lot of sense to put your definition in writing. Spell out whether tardiness applies to shift starts, meetings, or return times from breaks and lunch. Moreover, cover common scenarios such as clocking in early but not being ready to work, or arriving on time but unprepared for duties. This prevents misunderstandings and keeps everyone on the same page.
Next, let’s tackle some characteristics that policies typically share.
What is a good tardiness policy? Key elements you should include
An effective employee tardiness policy consists of five essential components:
- Define what constitutes tardiness with specific timeframes.
- Outline allowed occurrences before disciplinary action begins.
- Detail progressive consequences from warnings to termination.
- Explain your documentation and appeals process.
- Specify reset periods for tracking violations.
Your tardy and absence policy should establish rolling periods for tracking tardiness, typically 90 days or 12 months. This prevents employees from indefinitely accumulating violations while encouraging consistent improvement. Include notification requirements so employees understand when they are approaching disciplinary thresholds.
Cover different scenarios in your policy. Make clear distinctions between excused and unexcused tardiness. Explain how partial absences relate to tardiness tracking. Say whether tardiness affects performance reviews, promotions, or other job decisions. The clearer your policy, the easier it is to fairly enforce it. Build your tardiness rules into your broader attendance policy. This way, you handle all attendance issues the same way instead of having different rules for different problems.
The table below can also help you visualize what company policies tend to include.
| Element | What to include |
| Definition | Clearly define what counts as tardy (e.g., more than five minutes late or after a specific grace period) |
| Allowed occurrences | State how many times employees can be late before discipline begins. |
| Progressive discipline | Outline steps from verbal warning to termination |
| Documentation | Require timestamps, written notes, and signed records for each incident |
| Reset period | Use a rolling 90-day or 12-month tracking window to encourage improvement |
| Excused vs. unexcused | Clarify which reasons (like emergencies or approved schedule changes) don’t count toward violations |
This may be easier said than done, so let’s look at some verbiage to get you started, which is what we cover next.
Sample tardy policy language you can use
There’s different directions you can take when it comes to what to include. But if you’re stuck, here’s some language you can adapt:
[Company Name] expects all employees to arrive promptly for scheduled shifts, meetings, and work assignments. Tardiness disrupts operations and puts extra work on coworkers.
Definition of Tardiness: Employees are considered tardy when they arrive more than five minutes after their scheduled start time without prior approval from their supervisor.
Progressive Discipline:
- First occurrence: Verbal coaching and documentation
- Second occurrence: Written warning placed in employee file
- Third occurrence: Final written warning and potential schedule adjustment
- Fourth occurrence: Suspension without pay
- Fifth occurrence: Termination of employment
Occurrences are tracked on a rolling 12-month basis. Employees may appeal disciplinary actions through normal procedures. Tardiness due to documented emergencies or approved schedule changes will not count toward disciplinary action.
This template works for most small businesses. You can customize the timeframes and consequences to match your operational needs. You might also want to create an employee handbook that includes this policy alongside other workplace standards.
Structuring consequences and fairly documenting tardiness
How can you approach someone having issues with being punctual?
- Start with a conversation for first-time tardiness
- Sit down with the employee and figure out what’s going on. Make your expectations clear and offer to help solve the problem
- Document what you discussed, when it happened, and what you both agreed upon
When conversations don’t lead to change, written warnings come next. List the specific tardiness incidents, what needs to improve, and what happens if the pattern continues. Have employees sign the form to confirm they have reviewed it.
Though extreme, suspension without pay gets the employee’s attention and gives them time to think about whether they want the job. However, be sure to first check your state laws. Some businesses skip this step and go straight to a final warning.
All this said, termination should be the last straw when nothing else works. You need to keep clear records showing that you tried multiple times to help. This protects you from wrongful termination lawsuits.
Document everything the same way for everyone: same forms, same process, same consequences. Personal feelings and job performance in other areas don’t matter here. Consistency keeps you out of legal trouble.
Compliance check: How to avoid wage and hour violations
Federal and state labor laws limit how you can handle tardiness without creating wage violations. You cannot dock pay below minimum wage or reduce already worked hours as punishment for someone who can’t arrive on time. Discipline employees for what they do going forward, not what they’ve already been paid for.
Time clock rounding helps you handle minor tardiness without breaking wage laws. Most businesses round time punches to the nearest quarter hour. This works for employees who clock in early and those who clock in late. You need to apply the same rounding rules to everyone, not cherry-pick when it helps your business.
Some states require payment for any time worked, regardless of whether employees arrive late. Check your local requirements before implementing policies that could impact payroll processing or compensation calculations.
Don’t require employees to work without pay to make up for tardiness. This creates overtime violations and wage theft issues. Instead, address tardiness through your disciplinary process while making sure that you accurately track all worked hours.
An absence and tardiness policy must align with Family and Medical Leave Act (FMLA) requirements and state sick leave laws. Tardiness related to covered medical conditions may require accommodation rather than discipline.
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Dealing with edge cases: Emergencies, traffic, and exceptions
We should point out that not all tardiness calls for disciplinary action. Medical emergencies, severe weather, public transportation mishaps, and family crises are all legitimate reasons for being late. It’s a good idea for your policy to acknowledge these situations while preventing abuse of exceptions.
- Require notification when possible. Employees should call or text as soon as they know they’ll be late, explaining the situation, and providing an estimated arrival time. This allows you to adjust coverage and demonstrates a good faith effort to minimize disruption.
- Clearly document exceptions. Note the reason for tardiness, when you received notification, and why you excused the occurrence. This helps prevent employees from feeling that you are playing favorites and allows you to identify patterns that may signal larger issues.
- Don’t let people abuse emergency exceptions. Real crises happen, but when someone has “emergencies” every month, that’s bad planning or poor time management. When employees claim frequent emergencies, ask for proof. Medical notes or incident reports are effective for this purpose.
According to recent surveys, with 82% of employees at risk of burnout , some tardiness might signal deeper workforce management issues. Before jumping to disciplinary action, address chronic lateness through supportive conversations.
Having a tardy policy can help both employees and employers
While perfect attendance might be unrealistic even for the most well-intentioned employees, establishing clear expectations helps everyone understand what is acceptable and what raises red flags. At the end of the day, reliable attendance is something organizations depend on to keep operations running smoothly. Establishing clear guidelines that team members can reference from day one goes a long way toward creating a productive and fair workplace for everyone.
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Jon Davis is the Sr. Content Marketing Manager at OnPay. He has over 15 years of experience writing for small and growing businesses. Jon lives and works in Atlanta.