Observing FLSA record-keeping requirements
The Fair Labor Standards Act is best known for setting rules pertaining to minimum wage, overtime pay and youth employment. However, without proper record-keeping, workers, Department of Labor investigators and employers themselves are unable to ensure FLSA requirements are being observed.
Covered employers must keep certain information about each non-exempt worker on their books. This ranges from personal details - for example, the worker's name, Social Security number and gender - to data such as the time and day the employee's work week begins, the expected hours of employee attendance, the regular hourly pay rate and his or her total straight-time and overtime earnings for each week.
Records used to calculate wages, such as fingerprint time clock data, should be retained for two years, while payroll records should be saved for at least three years.
For workers with a fixed schedule, employers are permitted to merely indicate whether the schedule was followed that week and only record the number of hours worked on an exception basis.
A company's first record-keeping violation is likely to result in a fine levied by the Department of Labor. Subsequent offenses may be punishable by prison time.
Covered employers must keep certain information about each non-exempt worker on their books. This ranges from personal details - for example, the worker's name, Social Security number and gender - to data such as the time and day the employee's work week begins, the expected hours of employee attendance, the regular hourly pay rate and his or her total straight-time and overtime earnings for each week.
Records used to calculate wages, such as fingerprint time clock data, should be retained for two years, while payroll records should be saved for at least three years.
For workers with a fixed schedule, employers are permitted to merely indicate whether the schedule was followed that week and only record the number of hours worked on an exception basis.
A company's first record-keeping violation is likely to result in a fine levied by the Department of Labor. Subsequent offenses may be punishable by prison time.
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