Regardless of whether the new overtime rule takes effect, the Fair Labor Standards Act (FLSA) is no laughing matter. Businesses who aren’t compliant with these regulations are vulnerable to lawsuits from employees and fines from the Department of Labor – both of which can ruin even a successful business.

The good news is, the FLSA has clear record keeping requirements so you know exactly what records you’re responsible for maintaining. And this isn’t just for the sake of keeping these records, either. Having accurate FLSA-compliant records of your employees’ time and attendance will help protect your company if a disgruntled employee ever claims they weren’t fairly compensated.

Basic Requirements

Here are the minimum requirements your record keeping process must meet in order to comply with FLSA regulations:

  1. Employee’s full name
  2. Employee’s social security number
  3. Employee’s full address
  4. Employee’s birth date
  5. Employee’s sex
  6. Employee’s occupation
  7. Time and day when the employee’s work week begins
  8. Number of hours the employee worked each day
  9. Total hours the employee worked each week
  10. How the employee was paid (hourly, salary, commission, etc.)
  11. Employee’s regular hourly pay rate
  12. Total daily/weekly ‘straight time’ earnings
  13. Total weekly overtime earnings
  14. Any additions to or deductions from the employee’s wages
  15. Total wages paid to the employee
  16. Dates that the given pay period covers

Additional Requirements

The requirements above cover standard nonexempt employees, but some businesses will have more complex needs.

For example, exempt employees like executive, administrative staff, and other salaried positions are exempt from many FLSA regulations, but you’ll need to make sure you record information that proves their exempt status, including their wages and any other remunerations they’ve earned.

For employees whose wages are substituted by tips or other earnings, you must also record any reported tips and, if necessary, keep separate tabs on tipped labor and untipped labor.

If you think you have employees that require more complex record keeping, consult with your HR department or read the regulations created by the Department of Labor.

Other FLSA Record Keeping Information

The FLSA does not require any particular format or system for keeping these records. However, it does stipulate that records must be easily accessible and stored “at the place or places of employment, or at one or more established central recordkeeping offices where such records are customarily maintained.” For the latter case, the employer must make records available to the employee within 72 hours of a request.

Finally, for most records, the FLSA requires the employer to store records for a minimum of three years. In practice, however, it makes sense for the employer to retain records for as long as possible.

Need help keeping your records FLSA-compliant? ExakTime’s cloud-based time tracking software stores records indefinitely while you are an active ExakTime customer, giving you peace of mind that you’ll have all the information you need, should you ever need it. Want more information? Just fill out the form below!