So, you understand who is covered under FLSA. You know how you want to handle each employee’s exempt status and have begun to implement changes. You’ve even had the conversation with each employee, explaining how the updates to FLSA are going to affect them. But now, you have to prepare for the aftermath of any policy change: the paperwork.
You probably now have at least one employee who is newly nonexempt from overtime. Before the new overtime regulations, a quick check of the office to make sure everyone had arrived on time may have been the extent of your timekeeping when it came to exempt employees. Now, for FLSA, you need to keep new employee records for compliance.
First of all, the records you need to keep for every employee are (according to the Department of Labor):
- Employee's full name and social security number.
- Address, including zip code.
- Birth date, if younger than 19.
- Sex and occupation.
- Time and day of week when employee's workweek begins.
- Hours worked each day.
- Total hours worked each workweek.
- Basis on which employee's wages are paid (e.g., "$9 per hour", "$440 a week", "piecework")
- Regular hourly pay rate.
- Total daily or weekly straight-time earnings.
- Total overtime earnings for the workweek.
- All additions to or deductions from the employee's wages.
- Total wages paid each pay period.
- Date of payment and the pay period covered by the payment.
Most of these criteria are standard for a record of employment; however, keeping track of the exact hours worked can seem daunting for employers. Using a timekeeping system could be one solution, but for employees who have long relied on the honor system of just working when they say they will, being asked to punch a clock may feel insulting.
The DOL makes a provision for employees who generally have a set schedule every week and rarely work overtime. Stating an employee’s usual schedule and simply marking that they followed that schedule every week is considered appropriate. Any overtime hours worked can be added on an exception basis.
Most records need to be kept for three years. Documents used to calculate pay, like time cards, only need to be kept for two years.
Complying with the new FLSA regulations may seem daunting, but it doesn’t have to be! If you have more questions, check out our recent Changes in Overtime Regulations webinar.