Got records? The Fair Labor Standards Act says that, as an employer, you need to have them. Employer record keeping requirements aren’t complicated; but they are necessary to ensure your small business is compliant with federal regulations.
What is the Fair Labor Standards Act (FLSA)? It’s a federal law that sets employment standards for a range of issues, from minimum wage to overtime pay.
The law dictates that employers are obligated to keep certain records pertaining to workers.
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- Full name and Social Security number
- Full address (remember the zip code!)
- Birth date, if the employee is younger than 19
In addition, the Fair Labor Standards Act outlines the data employers are required to keep regarding wages and hours worked. Here are the employer record keeping requirements:
- Time & day of the week the employee’s work week begins
- Number of hours worked each day
- Total number of hours worked in each work week
- Basis for the worker’s wages (For example, note if the employee is paid $10.00/hour, $400/week, or the rate paid for piecework.)
- Regular pay rate per hour
- Total daily or weekly regular time earnings
- Total overtime earnings for the work week
- Additions or deductions from the worker’s wages
- Total wages paid each pay period
- The date the worker was paid and the pay period covered by that payment
Records must be retained for a specific time period.
Employers can’t purge records whenever they need to free up files or disk space. The Fair Labor Standards Act says employers must keep the records at the workplace or a central records office for inspection by a representative of the U.S. Department of Labor Wage and Hour Division.
Which employment records do you need to keep and for how long?
- Keep payroll records, collective bargaining agreements, sales and purchase records for at least 3 years.
- Keep records that pertain to wage computations for at least 2 years. Examples of wage-related data include time cards, work & time schedules, wage rate tables, piecework records, and records of additions/deductions from wages.
Is your business in compliance with recordkeeping requirements?
Businesses who do not meet employer record keeping requirements are in violation of the Fair Labor Standards Act. What’s more, poor record keeping may expose your company to liability if it’s accused of wage and hour violations. Don’t open yourself up to FLSA violations or expensive liability.
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