FLSA Recordkeeping Requirements: Time Cards, Payroll Records & Retention

A former staff member filed a wage claim. The DOL investigator wants your time cards, wage rate tables, and compensation records for the last three years. You open the filing cabinet and realize you are not sure what you were supposed to keep, or whether a digital time clock export counts.

This moment is avoidable. The FLSA recordkeeping requirements are specific, and they are shorter than most employers assume. Here is what the law demands, how long to keep it, and what format works.

What FLSA requires: the mandatory records list

The Fair Labor Standards Act requires employers to maintain accurate records on every non-exempt worker. The Department of Labor has a specific list.

You must keep the person's full name and social security number, address, birth date (if under 19), sex, and occupation. That covers identification. Then come the compensation figures: hours worked each day and each week, the regular rate of pay, straight-time earnings, overtime earnings, all additions to or deductions from wages, total wages paid each pay period, and the date of payment.

That is the complete federal list. No W-4s. No I-9s. No benefit election forms. Other laws demand those. If you have the information above, your federal recordkeeping is compliant.

What hours must an FLSA time record show each day and each week?

Hours worked is the core of FLSA recordkeeping. You need the exact hours worked each day and a total for each workweek. A workweek is a fixed, recurring period of 168 hours: seven consecutive 24-hour periods. It does not need to match the calendar week or your pay period.

For each worker you must record when they start and stop work, the number of hours worked each day, and the total hours worked each week. A fixed schedule can serve as the record if you note when the person adheres to it. Off-schedule hours need separate documentation.

This is where time cards enter the picture. A punch clock, a spreadsheet, a paper timesheet: the DOL does not care about the method. It cares that a contemporaneous record exists and is accurate.

What pay details must an FLSA record include: regular rate, OT, additions, deductions

Time records are half the picture. You also need to document how you paid for those hours.

For each pay period you must record the regular rate of pay, straight-time earnings, and overtime earnings. The regular rate equals total weekly compensation divided by total hours worked. It includes most bonuses and commissions. It excludes discretionary bonuses, gifts, and paid time off.

You also need to track every addition to and deduction from wages: health insurance premiums, retirement contributions, wage garnishments. Each deduction must be itemized. A net pay figure alone is not enough.

Finally, record the total wages paid each pay period, the date of payment, and the pay period covered. If you pay biweekly, your records must show which two workweeks each paycheck covers.

What identifying information must an FLSA time record include?

The identifying information looks straightforward. A few details matter.

Use the full name exactly as it appears on the social security card. Record the social security number itself. Use the actual residential address, not a P.O. box. Note the person's sex; this supports Equal Pay Act compliance. List the occupation or job title. That title matters for determining exempt status.

If the worker is under 19, you also need the date of birth. Child labor laws restrict the hours and types of work minors can perform. You do not need the birth date for anyone 19 or older.

Retention periods: 3 years for pay records, 2 for time cards

Different records get different retention periods under the FLSA. This trips up many employers.

Pay records must be kept for at least three years. This category includes the person's name, address, occupation, regular rate, earnings, deductions, total wages, date of payment, and the pay period covered.

Time cards, piece rate tickets, wage rate tables, and work schedules must be kept for at least two years. These are the supporting documents that show how the pay figures were calculated. When an investigator asks to see the time cards behind the payroll numbers, they must exist.

The clock starts on the date the record is made. Process pay on January 15, 2025? That pay record stays until at least January 15, 2028. The time cards from that period stay until at least January 15, 2027.

Format: paper, digital, time clock

The FLSA is format-agnostic. Paper, a spreadsheet, compensation software, the back of a napkin: all fine, as long as the records are accurate and complete. The DOL's regulations explicitly permit electronic records.

Your time clock app that exports a CSV file is fine. Your payroll service storing records in the cloud is fine. A handwritten timesheet is fine. What matters is that the records exist and are complete.

One caveat: if you use a time clock, you must record the actual punch time. Rounding to the nearest quarter-hour is permitted only if the rounding is neutral. It must not systematically favor the employer. Rounding that always rounds down is a violation.

ADEA and FMLA: overlapping recordkeeping duties

The FLSA is not the only law with recordkeeping demands. The Age Discrimination in Employment Act (ADEA) and the Family and Medical Leave Act (FMLA) add obligations.

The ADEA requires employers to keep pay records for three years, including date of birth, job title, and salary history. It also requires time cards and wage rate tables for two years, matching the FLSA. The key difference: ADEA records must include the person's age, used to investigate discrimination claims.

The FMLA requires tracking hours worked for eligibility. A worker qualifies for FMLA leave after 1,250 hours in the 12 months before the leave. Your time records are the evidence. If someone requests FMLA leave and you cannot produce time records showing they fell short of the 1,250-hour threshold, you will likely lose the dispute.

What happens when records are missing

If you do not have accurate records, the DOL will estimate the hours. The estimate will not favor you.

Under the FLSA, when an employer fails to keep adequate records, the worker's testimony about hours worked can establish a claim. The burden shifts to the employer to disprove those hours. This principle comes from a Supreme Court case from 1947.

In practice, a former staff member can say "I worked 50 hours a week" and you must disprove it without time records. That is an uphill fight. The DOL also assesses penalties for recordkeeping violations, up to $1,000 per violation, on top of any back wages owed.

Best practices for FLSA-compliant recordkeeping

FLSA recordkeeping is simple enough to get right. Here is what to do.

Use a time clock system that records exact punch times. A physical clock, a phone app, a web-based tool: make sure it captures the actual time of each punch. Train supervisors to review and approve time cards each pay period. When someone forgets to clock in, have them submit a correction form documenting the actual hours worked.

Organize pay records by workweek, not by pay period. The FLSA is based on a workweek. Your records should make it easy to see the hours worked in each seven-day period. If you pay biweekly, make sure each pay period covers two complete workweeks.

Store records so they survive staff departures and company changes. If you use compensation software, export records regularly and back them up. If you use paper, keep it in a fireproof cabinet. The three-year clock does not restart when someone leaves. Their records stay on file for the full retention period.

Do not forget state recordkeeping rules. Many states go beyond the FLSA. California requires employers to keep records for four years. New York requires four years for pay records and six years for some industries. Check your state labor department website for specifics.