Accurate time records are not just a payroll convenience.
For covered, nonexempt employees, they are part of an employer’s FLSA recordkeeping responsibilities.
Employers need more than a start and end time. A reliable process must capture daily and weekly hours, remote and after-hours work, overtime and corrections, while preserving different types of records for the required periods.
This guide explains the FLSA timekeeping requirements, the difference between recording and retaining employee time data, and how Prodaff can support a more consistent recordkeeping workflow without replacing legal or HR guidance.
What Are the FLSA Timekeeping Requirements?
The Fair Labor Standards Act establishes federal standards for minimum wage, overtime and recordkeeping. The FLSA recordkeeping requirements do not prescribe one format, but covered employers must maintain accurate information about covered, nonexempt employees, their hours and wages.
Two related but distinct responsibilities sit within that requirement:
| Responsibility | What it means |
|---|---|
| Recording | Capturing complete and accurate information about hours worked, wages, overtime and related payroll details |
| Retention | Preserving different categories of records for the period required under federal, state and local rules |
According to the US Department of Labor’s FLSA recordkeeping requirements, the basic records include the employee’s identifying information, the time and day the workweek begins, hours worked each day, total hours worked each workweek, the basis of pay, regular and overtime earnings, wage adjustments, total wages, and the payment date and pay period covered.
Important distinction: Employers must first create complete and accurate records. Those records do not all have the same retention period. Payroll records generally must be retained for at least three years, while timecards and other supporting wage-calculation records generally require at least two years.
The operational priority is therefore accurate daily recordkeeping. Storing incomplete time entries for the correct number of years does not resolve missing hours, unrecorded overtime or inaccurate wage calculations.
Which Employees Need Detailed Time Records?
The daily and weekly hours requirements described in Fact Sheet 21 apply to covered, nonexempt employees. These employees are generally protected by the FLSA’s minimum-wage and overtime rules and usually must receive overtime pay when they work more than 40 hours in a workweek.
A salary or managerial title does not automatically make someone exempt. Status depends on the applicable compensation and duties tests, and different recordkeeping rules apply to certain exempt employees. Classification decisions should be reviewed with qualified employment counsel.
Which Time and Pay Records Must Be Kept
Time records connect daily hours with weekly totals, pay calculations and payroll documentation.
| Record category | Information to maintain |
|---|---|
| Workweek | Time and day when the employee’s workweek begins |
| Daily and weekly time | Hours worked each day and total hours worked each workweek |
| Pay basis and rate | How wages are paid and the employee’s regular hourly rate |
| Earnings | Straight-time earnings and overtime earnings for the workweek |
| Adjustments | Additions to or deductions from wages |
| Payment | Total wages, payment date and the pay period covered |
Daily records help identify missing entries, verify overtime calculations and resolve questions before payroll is finalized. They should also be organized for timely retrieval and review.
Must Time Records Be Kept for Three Years?
The FLSA recordkeeping requirements do not assign the same retention period to every record. The Department of Labor states that payroll records, collective bargaining agreements, and sales and purchase records generally should be preserved for at least three years.
The supporting records used to calculate wages generally should be retained for at least two years. These include timecards, piecework tickets, wage-rate tables, work and time schedules, and records of additions to or deductions from wages.
The statement that every time record must be retained for three years is therefore too broad. Payroll records generally carry the three-year period, while wage-computation records generally carry the two-year period. Employers can review the underlying federal recordkeeping regulations in 29 CFR Part 516. State and local rules may require longer retention periods.
Does the DOL Require a Time Clock?
No. Employers may use paper timesheets, physical clocks, a designated timekeeper, employee-reported records or digital time-tracking software. The Department of Labor’s standard is that the selected method must produce complete and accurate records. Employers evaluating a digital system can use our guide to choosing employee time-tracking software to compare the capabilities that matter for their teams.
For fixed schedules, an employer may record the regular schedule and indicate when it was followed. Any variation must show the hours actually worked, making exception handling an essential part of the process.
What Counts as Hours Worked
Timekeeping compliance depends on more than recording scheduled shifts. Hours worked generally include time when an employee is required to be on duty, remain on the employer’s premises or work at another prescribed location. They can also include additional work the employer allows or permits, even when it was not formally requested.
Depending on the circumstances, that may include preparation or closing tasks, after-hours messages, work during an unpaid meal period, required training or assignments completed from home.
A policy against unauthorized overtime does not remove the obligation to record and pay for work the employer knew or should have known was performed. Employers can learn more about identifying and documenting additional hours in our guide to employee overtime tracking. The Department of Labor provides more detail in hours worked under the FLSA.
How Do the Rules Apply to Remote Teams
Remote and hybrid work can blur the workday. An employee may start early, respond after dinner or return to a task after ending the day. Managers cannot rely on physical arrival and departure times.
A remote-work policy should explain when tracking begins and ends, how unscheduled work is reported, how missing entries are corrected and who approves records. The objective is accurate reporting, not constant observation, including for short tasks outside the expected schedule.
What Weakens Employee Time Records
Most recordkeeping gaps come from inconsistent processes rather than the absence of a timer. Employees may forget to start or stop tracking, managers may edit records without documenting why, meal periods may be deducted even when work continued, and after-hours messages may never reach the timesheet.
Problems also arise when employers keep weekly totals without daily hours, delete timecards too early or provide no correction process. Clear policies, training and regular review are as important as the technology.
How Prodaff Supports Reliable Time Records
Prodaff can help employers create a more consistent time-recording workflow. Employees control when tracking starts and stops and can connect recorded time with specific tasks or projects. This supports the collection of daily work-hour records across in-office, remote and distributed teams.
Managers can review entries by employee, date, task or project before records move into payroll or internal reporting. When attendance regularization is used, employees can submit corrections for missed punches or incorrect hours, while approval records retain the reason and timestamp associated with each change.
Teams can export attendance and time-log data in XLS or CSV format for payroll preparation, internal review or record organization. These capabilities support record collection, correction and retrieval, but Prodaff does not classify employees, determine which activities are compensable or guarantee compliance. Employers remain responsible for their policies, retention decisions and applicable laws.
FLSA Timekeeping Checklist
- Identify covered, nonexempt employees and review classifications regularly.
- Record hours worked each day and total hours for every workweek.
- Provide a clear way to report unscheduled, remote or after-hours work.
- Document corrections and managerial changes to time entries.
- Review records before payroll is finalized.
- Retain payroll records for at least three years and supporting wage-calculation records for at least two years.
- Check state and local rules for additional requirements.
- Restrict access to employee information and review the process with qualified counsel.
Building a Timekeeping Process That Fits Your Team
The FLSA gives employers flexibility in how they track working time, but the records must be complete and accurate. A reliable process captures daily hours, weekly totals and exceptions while giving employees a clear way to review and correct their time.
Prodaff’s employee time-tracking features help teams record hours, connect time with tasks and maintain exportable work logs across office, remote and distributed environments. See how it works for your team with a 14-day free trial. Plans start at $5 per user.
Frequently Asked Questions
Covered employers must maintain accurate daily and weekly hours for each covered, nonexempt employee. Different recordkeeping requirements may apply to exempt employees.
Timecards and other records used to calculate wages generally should be retained for at least two years. Payroll records generally must be retained for at least three years.
No. Employers may use paper timesheets, physical clocks, employee-reported records or digital systems. The selected method must produce complete and accurate records.
Federal rules permit certain rounding practices when they are applied properly and do not consistently disadvantage employees. Employers should review rounding practices with counsel and check state law.
Employers may be responsible for work they knew or should have known was performed, even when the employee did not follow the reporting process. Employers need a reasonable method for recording and correcting all hours worked.