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 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.