Business general liability with the management of tracked hours is straightforward. Hours need to be collected, unmodified and stored responsibly so that the information is readily accessible in the event of an audit.

If hours are modified there needs to be an HR company policy explaining the parameters of making changes AND stepped trackability of every change. This trackability of changes is critical if audited. Realistically, hours will need to be changed occasionally if workers forget to clock, work OT after they've already clocked out, the key is to be able to, in an organized AND trackable fashion, show the history of the change, before and after.

Other liability factors exist in the handling of collected hours. The best recommendations include engaging an HR professional for federal and state laws governing payroll hours handling and calculations.