Important FLSA Recordkeeping Requirements for Nonexempt Employees

Companies are required to understand and follow the Fair Labor Standards Act (FLSA or Act) to keep compliance and operational efficiency. An often overlooked but critical aspect of the FLSA is its recordkeeping requirements. Below is a snapshot of what records must be preserved by employers to meet FLSA standards, including insights on how integrating workforce compliance software can steer organizations away from legal pitfalls and foster a transparent and compliant workforce environment. 

The Fair Labor Standards Act, among other things, sets federal minimum wage, overtime pay, and youth employment standards for employees in the private sector, and in local, state, and federal governments. Equally important, the Act requires covered employers to maintain certain employment records for nonexempt employees to avoid noncompliance issues and penaltiesⁱ. Employee management software integrated with workforce compliance software can help your team collect and store the right employee information to follow the FLSA requirements. 

What Employee Records Must be Kept According to the FLSA?

Although the FLSA does not mandate that employers keep any specific form of record regarding nonexempt employees, the Act requires that the records accurately include certain identifying information about the nonexempt employee and their hours worked and wages received.  

Employee information needed to comply with FLSA recordkeeping requirements includes:  

• Employee’s full name (as used in Social Security records) and social security number 
• Home address, including zip code 
• Birth date, if under age 19 
• Occupation and sex 
• Time of day and day of week the employee’s workweek begins 
• Regular, hourly, pay rate for any workweek in which overtime pay is due 
• Basis on which the employee’s wages are paid (e.g., per hour, per week, piecework) 
• Hours worked each workday (a “workday” is any fixed period of 24 consecutive hours) 
• Total hours worked each workweek (a “workweek” is any fixed and regularly recurring period of 7 consecutive workdays) 
• Total daily or weekly straight-time earnings, exclusive of premium overtime compensation 
• Total premium pay for overtime hours for the workweek 
• All additions to or deductions from the employee’s wages each pay period 
• Total wages paid each pay period 
• Date of payment and the pay period covered by the payment 

How Long Must FLSA-Required Records Be Kept?

Covered employers must keep payroll records, collective bargaining agreements, and sales and purchase records for at least three years from the last entry made on them. Records on which wages are based should be retained for two years, such as timecards, piecework tickets, wage rate tables, work and time schedules, and documents about additions to or deductions from wages.   

These records may be kept at the worker’s place of employment or in the employer’s central records office and must be available for inspection by the Department of Labor’s representatives. Finally, employers must conspicuously display an official poster outlining the FLSA’s requirements in all their establishments to allow employees easy access. 

Along with federal FLSA recordkeeping requirements, some states have their own requirements for preserving employee wage and hour records. Employers must be aware of these state laws, which are distinct from federal law, but not necessarily superseded by federal law.  

To be safe, it may be best for employers to keep their employee wage and hour records for the longest period indicated by any law applicable to their organization or consult an experienced employment attorney to ensure compliance with all recordkeeping requirements. 

Compliance With FLSA Helps Organizations With Workplace Transparency

Navigating the intricacies of the FLSA, particularly its recordkeeping mandates, is vital for keeping legal compliance and promoting operational transparency within any organization. Using workforce compliance software and employee management systems streamlines this process, ensuring both federal and additional state-specific recordkeeping requirements are met without issue. Incorporating advanced employee management software can simplify collecting and storing these detailed records.  

Keeping comprehensive and accurate employee records as specified by both federal and state laws can help safeguard against noncompliance penalties and enhance their workforce management strategies. This proactive approach helps companies adhere to legal standards and creates a more transparent and informed workplace for employees. 

^{[i]Non-exempt employees are workers subject to the FLSA who are required to receive minimum wage and overtime pay.}