FLSA Record-keeping Commandments (Reference Article)
Every covered employer should keep certain records for each non-exempt employee. The Act requires
no particular form for the records. All it requires is that the records include certain identifying
information about the worker, data about the wages worked, and the hours earned. The law requires
this data to be accurate. Failure to, can result in an FLSA lawsuit.
Can your employee & time tracking records save you from an FLSA LAWSUIT?
Yes, they can!
You may have heard the phrase & “time is money” before, but many business owners and workers
continue to underestimate the cost of mismanaging time. Because of this, they end up losing a lot of
money. The true cost of time tracking goes far beyond the price of unproductive hours or wasted
minutes. Failing to manage time may cost you valuable business insight, potential new customers, or
even get you hit with a wage and hour claim within the next several years. Worst of all it could even cost
you a lawsuit. Hence it’s important to not only track your employee’s time but also to keep records in
case of any lawsuit that may arise.
Accurate records can ward off FLSA lawsuit
If you end up with an hour & wage violation, the Department of Labor (DOL) will put the burden of
verification on the employer to show they paid the employee fairly. In other words, if you can’t prove
fair wages were paid for the time worked you will be on the line for overages and fees. Many companies
ensure compliance by using time tracking devices to monitor and manage their employee’s time. These
accurate records should be kept by the company together with the timely payments made. In case of
any lawsuit that may arise, accurate records produced by the involved company may ward them off
Kinds of records to keep
Most cases of companies getting caught for not paying their employees properly under the FLSA often
involve one of the organization’s violations or failure to maintain proper records. Below is a listing of the
kind of records that an employer must keep:
1. Employee’s full name and social security number.
2. Address, including zip code.
3. Birth date, if younger than 19.
4. Sex and occupation.
5. Time and day of the week when a workers workweek begins.
6. Hours worked each day.
7. Total hours worked each workweek.
8. Basis on which workers’ wages are paid (e.g., “$7 per hour”, “$400 a week”, “piecework”)
9. Regular hourly pay rate.
10. Total daily or weekly straight-time earnings.
11. Total overtime earnings for the workweek.
12. Additions or deductions from the employee’s wages.
13. Pay period covered by the payment and the date of payment.
14. Total wages paid each pay period.
How long to keep records for
As an employer, keeping records is one of the most important things to remember. According to the Fair
Labor Standards Act (FLSA), you must keep all payroll records for at least three years. Also, you need to
keep records that show how you processed wages for two years (For instance, time cards that comply
with FLSA timekeeping requirements).
How to keep accurate records
Keeping track of workers working hours is not optional. FLSA and other numerous federal and state
laws, requires employers to keep records of hours worked, wages paid, and other conditions of
employment. To keep accurate records, most companies use time tracking software to manage time. A
software like Timeero allows its users to record time spent on tasks. It has packages that include time
and attendance tracking, scheduling, absence management, human resources, payroll, talent
management, and labor analytics. All this data is collected, stored and made available to the
management for scrutiny. This time tracking software offers the best resources when it comes to time
tracking and accurate record keeping.
There is no appropriate time like the present to ensure that your time-keeping and record-keeping
practices comply with the FLSA.