Employers may be leaving themselves vulnerable to employee lawsuits if they have relaxed payroll practices or if human resources teams are not well-versed in the Fair Labor Standards Act (FLSA) requirements and current on state labor laws, according to HR Reporter. Low-paying industries are typically the most vulnerable to suits stemming from unpaid overtime or wage theft, but white-collar companies can also fall out of compliance and run into issues if they are not vigilant.

If corporations employ primarily salaried employees who work nine-to-five schedules and are exempt from the FLSA, they may not feel as much pressure to keep accurate records of employee attendance, the source points out, adding that this could be a mistake. To avoid any question about compliance, all businesses should maintain accurate accounts of workers' time and attendance.

The FLSA does not specify a particular method for tracking employees' schedules, but suggests they use either a timeclock, a timekeeper or ask workers to record totals on their own. If employees are on fixed schedules, they should take note of any days in which they work more or less than usual to ensure payroll histories are complete and accurate. 

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