March 21, 2023
The Fair Labor Standards Act (FLSA) is a federal law that sets minimum wage, overtime pay, and record keeping requirements for employers. One of the most crucial aspects of FLSA compliance is record keeping. Proper record keeping not only helps employers comply with the law, but it also protects them in the event of an audit or lawsuit. In this article, we'll discuss the importance of record keeping and provide a reminder for employers to stay on top of their FLSA record keeping requirements.
Why Record keeping is Important for FLSA Compliance
FLSA record keeping requirements are designed to ensure that employers are paying their employees fairly and accurately. Accurate and complete records help employers determine if their employees are eligible for minimum wage and overtime pay, and they can help prevent wage and hour violations. Additionally, FLSA record keeping can provide valuable information for employers to make informed business decisions.
Record keeping Requirements Under the FLSA
Under the FLSA, employers must keep certain records for all non-exempt employees. These records include:
Employers must retain these records for at least three years. Additionally, if an employee files a lawsuit or the Department of Labor conducts an audit, employers must produce these records upon request.
Record keeping Reminder for Employers
With so many record keeping requirements under the FLSA, it can be easy for employers to overlook something. To stay on top of FLSA record keeping requirements, employers should create a system for organizing and storing records. This can include using electronic timekeeping systems, maintaining accurate payroll records, and having a designated person responsible for FLSA compliance.
Employers should also periodically review their record keeping practices to ensure they are up-to-date with current FLSA requirements. Regular training for managers and HR staff can also help prevent errors and ensure that everyone understands the importance of record keeping.
In conclusion, proper record keeping is a crucial component of FLSA compliance. Employers who fail to comply with FLSA record keeping requirements can face significant penalties and legal repercussions. By staying on top of FLSA record keeping requirements, employers can protect themselves from liability and ensure that their employees are paid fairly and accurately. Remember, accurate record keeping is not only required by law, but it is also essential for maintaining a positive workplace culture and protecting a company's reputation.