DOL commonly finds recordkeeping violations when it investigates an employer’s wage and hour practices. The most frequent violations of the FLSA’s recordkeeping rules fall into two categories: (1) creating and maintaining the proper records; and (2) preserving those records.
Creating and Maintaining the Proper Records
The FLSA does not require that records be kept in any particular format. In some cases, this ambiguity could be a problem, but fortunately, most of the required information is usually maintained based on ordinary business practices and to meet compliance obligations of other laws and regulations. Employers should note that records required for exempt employees differ from those required for nonexempt works, as summarized by the chart below.
|
Record Type |
Exempt Employee |
Nonexempt Employee |
| Employee’s full name, home address, date of birth, sex and occupation |
Yes |
Yes |
| The time and day of week when workweek starts |
Yes |
Yes |
| Regular hourly rate of pay for regular rate and overtime pay |
No |
Yes |
| Hours worked each day and workweek |
No |
Yes |
| Total daily or weekly straight time earnings |
No |
Yes |
| Total premium pay for overtime |
No |
Yes |
| Total additions/deductions each pay period |
No |
Yes |
| Total wages paid each pay period |
Yes |
Yes |
| Date of payment and the pay period covered |
Yes |
Yes |
| Explanation of basis on which wages were paid |
Yes |
Yes |
Special Requirements
Some employees fall under special FLSA provisions and have different recordkeeping requirements. This list includes many employees and employer-employee relationships, including tipped employees, commissioned employees and students or apprentices. For the full list, refer to the FLSA.
Preserving Records
While the FLSA does not require a specific format for recordkeeping, it does require that certain records be kept for a certain amount of time, either two or three years.
Records falling under the “two years” category include basic employment and earnings records; wage rate tables; order, shipping and billing records; and records of additions to or deductions from wages paid. Records that must be kept for at least three years are payroll records; certificates, collective bargaining agreements and individual contracts; and sales and purchase records.
Don’t Forget State-law Requirements
Employers should note that state wage-and-hour laws may have their own recordkeeping requirements. So even if an employer is in compliance with the FLSA, it should check the applicable state law. If the state law is stricter, FLSA compliance will not excuse a state-law violation.