Wage and hour Record keeping
Discover the importance of record keeping with respect to the FLSA and the consequences of not properly maintaining records.
Record Keeping is Required
According to FLSA, each employer is required to maintain certain records for their employees unless an exemption applies. There is no specific form that is required, but there is a requirement for certain identifying information about the employee to be kept along with accurate records about their hours worked and wages earned.
Wage and hour record keeping best practices are essential for employers in order to comply with federal, state, and local laws. Good record keeping helps employers to ensure that employees are paid accurately and on time, and that their wages are accurately reported to the Internal Revenue Service (IRS). These best practices provide employers with guidelines for keeping accurate and up-to-date records of employees’ wages and hours worked.
All wage and hour records should be stored securely and protected from theft, destruction, or tampering. Employers should also ensure that only authorized personnel have access to these records.
It is important to ensure that all records are kept up to date. This includes any changes in pay rate, hours worked, overtime or other compensation, or changes in job duties.
To comply with the Fair Labor Standards Act (FLSA), employers must keep accurate and detailed records of all employees’ hours worked, wages paid, and other information related to their employment.
Record Keeping: How Long?
Employers should keep employee records on file even after an individual no longer works with the organization. Records pertaining to payroll, collective bargaining agreements, and sales and purchase should be kept for at least three years. Wage computation records such as time cards, work and time schedules, or anything pertaining to wages should be kept for a minimum of two years. All records must be open for inspection by the appropriate authorities and may be kept either at the place of employment or in a central records office.
Record Keeping Essentials List
The following employee records must be kept under FLSA:
Here are some myths to look out for:
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Employee's full name, social security number, and gender
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Address, including zip code
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Birth date, if younger than 19
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Occupation
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Time and day when employee's workweek begins
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Daily hours worked, weekly hours worked, regular hourly pay rate
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Earning records
Maintain accurate record keeping with wage and hour training
Maintaining accurate record keeping with wage and hour training is essential for any employer. It helps to ensure that employees are being compensated fairly for their work and that employers are compliant with federal and state laws. Through training, employers can learn how to properly track hours worked, overtime pay, minimum wage, and other compensation-related data.
Helping over 8,000 organizations create a safer, more productive workplace
EasyLlama’s online training course guides employers to understanding the rights employees have in the workplace. There are many wage and hour laws, and each one is designed to provide employees with safeguards from a potentially hostile work environment. The course covers:
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