FLSA Recordkeeping Requirements Every Employer Must Follow

The Fair Labor Standards Act requires employers to maintain specific records for each employee. These records must be kept for defined retention periods and made available for inspection by the Department of Labor. Failure to maintain proper records can result in penalties and shifts the burden of proof to the employer in wage disputes.

Required Records for All Employees

Every employer covered by the FLSA must maintain the following information for each employee:

• Full name and Social Security number
• Address, including zip code
• Birth date if under 19 years old
• Sex and occupation
• Time and day of week when employee's workweek begins
• Hours worked each day and total hours worked each workweek
• Basis on which employee's wages are paid (hourly rate, weekly salary, piecework, etc.)
• 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

Additional Records for Exempt Employees

For employees claimed as exempt from overtime:

• Basis on which wages are paid (salary, fee) in sufficient detail to allow calculation of the per-hour rate
• Total wages for each pay period

While the FLSA does not require employers to track hours worked by exempt employees, some employers choose to do so for internal management purposes.

Retention Periods

The FLSA specifies two retention tiers:

Three-year retention:

• Payroll records
• Collective bargaining agreements
• Sales and purchase records

Two-year retention:

• Basic employment and earnings records
• Time cards and piece work tickets
• Wage rate tables
• Records of additions to and deductions from wages
• Order, shipping, and billing records

Records may be kept at the place of employment or at a central records office if they can be made available within 72 hours of a request.

Form and Format

The FLSA does not require any particular form for records:

• Records may be kept on paper, electronically, or in any other format
• There is no required format for time cards or payroll records
• Electronic timekeeping systems are acceptable as long as they produce accurate records
• Whatever system you use must accurately reflect the actual hours worked

Common Recordkeeping Mistakes

Employers frequently make these errors:

• Not tracking hours worked by non-exempt salaried employees (salary does not eliminate the duty to track hours)
• Using automatic time rounding that systematically shortens employee hours
• Not recording meal periods properly, especially in states that require tracking
• Failing to capture off-the-clock work such as emails sent outside work hours
• Not maintaining records for terminated employees for the required retention period
• Allowing managers to edit timecards without documentation

Best Practices

To strengthen your recordkeeping:

• Use a reliable timekeeping system and train employees on proper use
• Require employees to certify their time records each pay period
• Establish a policy requiring employees to record all time worked, including overtime
• Prohibit off-the-clock work and train managers on this requirement
• Retain records for at least the statute of limitations period for wage claims in your state, which may exceed FLSA minimums
• Conduct periodic audits of timekeeping practices for accuracy