Employers understand the importance of maintaining accurate wage and hour records for their non-exempt employees. A periodic review of recordkeeping requirements under the Fair Labor Standards Act (FLSA) can keep an employer on track and avoid problems later on.
Records To Be Kept By Employers
The FLSA requires no particular form for required records, but does require that the records include certain identifying information about the employee and data about the hours worked and the wages earned. The basic records an employer must maintain are:
- Employee’s full name and social security number.
- Address, including zip code.
- Birth date, if younger than 19.
- Sex and occupation.
- Time and day of week when employee’s workweek begins.
- Hours worked each day.
- Total hours worked each workweek.
- Basis on which employee’s wages are paid (e.g., hourly, weekly, or piecework).
- Regular hourly pay rate.
- Total daily or weekly straight-time earnings.
- Total overtime earnings for the workweek.
- All additions to or deductions from the employee’s wages.
- Total wages paid each pay period.
- Date of payment and the pay period covered by the payment.
Timekeeping Methods: Employers may use any timekeeping method they choose. For example, they may use a time clock or have workers write down their own times. For employees work on a fixed schedule the employer may keep a record showing the schedule of hours and indicate that the worker followed the schedule.
Record Retention: Payroll records and collective bargaining agreements must be kept for at least three (3) years. Records on which wage computations are based should be retained for two (2) years (i.e., time cards and piece work tickets, wage rate tables, work and time schedules, and records of additions to or deductions from wages).
For additional information, visit the US Department of Labor, Wage and Hour Division website: http://www.dol.gov/whd.