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Details on the Recordkeeping Requirements of the FLSA

In the past, we’ve discussed certain topics relating to the Fair Labor Standards Act (FLSA), which is a highly important piece of federal law governing employment in the U.S. The FLSA sets forth certain requirements which must be met for certain workers, specifically “non-exempt” workers. Employers must adhere to the standards on minimum wage, recordkeeping, overtime pay and youth employment for those workers who are covered by the law. In this post, we will examine the recordkeeping requirements of the FLSA in detail. Employers need to take these requirements seriously because violations of the FLSA can carry heavy penalties.

Items Which Must Be Recorded

The FLSA lays out the type of information which must be kept by employers on non-exempt workers. Importantly, employers do not need to follow a particular style or method of recordkeeping for this information. Here is the list of informational items which must be kept on hand by employers:

Personal Information on Workers:

  • Employee’s full name
  • Employee’s social security number
  • Employee’s current home address, including zip code
  • Employee’s birth date (if younger than 19)
  • Sex and occupation (i.e. job title)

Employment Information on Workers

  • Time and day of the week when workweek commences
  • Number of hours worked each day by employee
  • The basis on which wages are calculated ($10 per hour, $500 per week, piecework, etc.)
  • Hourly pay rate
  • Total earnings for each day or week (depending on which basis applies)
  • Overtime earnings for each week
  • Deductions from or additions to the employee’s pay
  • Total wages earned during each pay period
  • Payment date and the dates covered by the payment

Time Requirement & Manner of Timekeeping

The personal items of information should be retained by employers for as long as the employee remains on the company’s payroll. For the items regarding employees’ work and pay (i.e. purchase records, sales records, collective bargaining agreements, payroll), employers must retain records for a minimum of 3 years. This is a highly important point. If you’re an employer, you must preserve these records for this length of time, otherwise, you will be in violation of the FLSA. Informational items regarding wage calculations, such as time cards, wage rate tables, time schedules, and so forth, must be retained for a minimum of 2 years. Importantly, all these records must be readily available for inspection by a representative from the Division of Labor. Also, the records must be stored at either the location of employment itself or at a central business office.

The FLSA grants employers considerable leeway when it comes to the method of timekeeping for employees’ hours. Employers do not have to follow a particular form or method, but the records must be complete. This means that employers have the freedom to use a time clock if they prefer, or they have a designated timekeeper who takes down data regarding employees’ hours. Employers may also choose to have workers keep track of their own time independently and then submit it to the employer. Whatever method is chosen, the records must be complete and accurate.

Contact the Trembly Law Firm for Additional Information

The recordkeeping requirements of the FLSA are firm requirements. Employers need to take the time to ensure that they are fully compliant with these rules, otherwise, they may encounter hefty penalties. If you’d like further information, or if you need additional assistance with the recordkeeping requirements for non-exempt workers, give the Trembly Law Firm a call today at (305) 431-5678.

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