“Accurate” Time Records Must Actually Be Accurate

» Articles » Payroll Articles » Article

May 30, 2017


Sometimes it is important to get back to basics and refresh our understanding of topics that are already well-known to human resources professionals. In this season of confusion, particularly regarding the on-again/off-again Fair Labor Standards Act (FLSA) salary test, it is worthwhile to review the timekeeping records that employers are required to maintain with respect to nonexempt employees. Despite clear guidance from the U.S. Department of Labor (DOL), employers make mistakes.

The DOL requires employers to maintain the following information:
1. Employee’s full name and social security number
2. Address, including zip code
3. Birth date, if younger than 19
4. Sex and occupation
5. Time and day of week when employee’s workweek begins
6. Hours worked each day
7. Total hours worked each workweek
8. Basis on which employee’s wages are paid (e.g., “$9 per hour,” “$440 a week,” “piecework”)
9. Regular hourly pay rate
10. Total daily or weekly straight-time earnings
11. Total overtime earnings for the workweek
12. All additions to or deductions from the employee’s wages
13. Total wages paid each pay period
14. Date of payment and the pay period covered by the payment
 
The DOL has created an exemption to item 7 (record of total hours worked) for employees working on fixed schedules. Under the applicable regulation, in order to satisfy the requirements of the exemption, an employee who works a fixed schedule must indicate in writing that the employee has strictly adhered to the schedule. Further, in weeks in which the employee works more or less than the scheduled hours, the employee must note the exact number of hours worked each day and each week. Reliance on this exception is fraught with risk, however. It is often the case that an employee’s actual working time deviates from the norm, and that the employee or the employer overlooks or is not aware of the need to document the deviation. Also, not all states adhere to this exception.

Employers are permitted to record hours worked in any manner that is complete and accurate. For example, it is permissible to use a time clock; the observation of a timekeeper, such as a supervisor; or via timesheets submitted by the employee.

Special care must be taken to accurately record the time of often overlooked positions, such as employees who work from home.
Why is it important to maintain accurate time records that, in every aspect, comply with the mandates of the regulations? The answer is simple: In addition to facing penalties from the DOL, improper records increase the risk of exposure to wage-hour lawsuits and liability for failure to pay earned wages. Employers are responsible for maintaining compete and accurate time records. The failure to do so will favor the employee’s claims for unpaid wages.


The material appearing in this web site is for informational purposes only and is not legal advice. Transmission of this information is not intended to create, and receipt does not constitute, an attorney-client relationship. The information provided herein is intended only as general information which may or may not reflect the most current developments. Although these materials may be prepared by professionals, they should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

The opinions or viewpoints expressed herein do not necessarily reflect those of Lorman Education Services. All materials and content were prepared by persons and/or entities other than Lorman Education Services, and said other persons and/or entities are solely responsible for their content.

Any links to other web sites are not intended to be referrals or endorsements of these sites. The links provided are maintained by the respective organizations, and they are solely responsible for the content of their own sites.