The Department of Labor (DOL) established the Fair Labor Standards Act (FLSA) in 1938 to guarantee employees receive certain rights, such as minimum wage and extra pay for overtime. In addition, the DOL created recordkeeping standards to ensure employers are accurately tracking all of their workers' time attendance and delivering the proper remuneration for labor.

Unfortunately, the DOL often finds employers who are in violation of the FLSA's overtime or minimum wage provisions are also failing to keep required records. The National Employment Law Project (NELP) found rampant violations in its Broken Laws, Unprotected Workers study.

The report revealed 57 percent of employees in low-paying industries across California, New York and Illinois did not receive documents showing their total earnings and wage deductions at the end of their last pay period, which means their employers were in violation of labor laws. All three states require businesses provide employees with those documents regardless of whether they receive a printed check or cash payment.

If employers are not in the practice of providing such documentation, they can start by implementing a payroll processing system, which can simplifying various employee paperwork tasks such as scheduling, generating reports and printing checks.
 

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