HR Management & Compliance

FLSA Recordkeeping: Create, Maintain and Preserve

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.

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