Sorting Using Python Sorted Function

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sorted accepts a keyword argument key:
https://docs.python.org/2.7/library/functions.html#sorted

key should be a callable that returns a sortable item per value. Typically this is a simple lambda. Simplifying your script a little, and running it on some test data, you can return a sorted list with something like this:

returnedData = system.dataset.toPyDataSet(system.dataset.toDataSet(
		["Clock Number", "Name", "Department", "Hours"], 
		[
			["100003683", "Bob Vance", 9, 24.0],
			["100008031", "Jim Hopper", 9, 32.6],
			["100012345", "Amos Burton", 1, 40],
		]
	))
	
	return sorted(
		dict(zip(returnedData.columnNames, list(row)))
		for row in returnedData,
		key = lambda columns: columns['Hours']
	)

The lambda is a function that will be called for each item in the comparison. It accepts the single argument in the list (in this case, the dictionary per row); the lambda is declaring this as being named columns. Then columns['Hours'] is returning the value of the 'Hours' column, which will be used for the sorting operation. If you wanted to sort by multiple values, you would return a tuple with each value to sort by, in order, e.g.:
key = lambda columns: (columns['Department'], columns['Hours'])
Where the return value will first be sorted by department, then by hours.

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