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Using biometrics to keep your employees honest and save you money

This story appears in the April 2005 issue of Entrepreneur. Subscribe »

David Karpman knew his payroll was too high. And he even knew the reason: Some of the 30 employees of Del Rey Nut Co. were filling out phony timecards and cashing paychecks for hours they hadn't worked. "We were paying for people who weren't there," says the 48-year-old owner of the Los Angeles food and promotional products company, which has $3.5 million in annual sales.

Karpman didn't know what to do about it--until he tried a time-and-attendance system that requires employees to scan their thumbprints when punching in. Says Karpman, "You have to have a thumbprint, so unless they bring in a cadaver, we're covered."

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