For this type of system, you need to keep all of the detail records. Reason being at some point someone is going to contest an invoice.
However, you should have some roll up tables. Each hour, compute current hours work and store the results. Do the same for daily, weekly, and monthly.
If some skewing is okay, you can compute the daily amounts off of the 24 hourly computed records. Weekly, off of the last 7 daily records. For monthly you might want to compute back off of the hourly records, because each month doesn't quite add up to 4 full weeks.. Also, it helps reduce noise from any averaging you might be doing.
I'd recommend a two step archival process. The first one should run once a day and move the records into a separate "hot" database. Try to keep 3 months hot for any type of research queries you need to do.
The second archive process is up to you. You could simply move any records older than 3 months into some type of csv file and simply back it up. After some period of time (a year?) delete them depending on your data retention agreements.