Fair Labor Standards Act (FLSA): Know the Rules and Avoid Litigation

Fair Labor Standards Act (FLSA)

Records and Requirements

3rd in a 4-part series

In Exempt vs. Non-exempt Employees, we briefly went over the differences between exempt and non-exempt employees, as laid out in the FLSA.  Of course, these distinctions are much more complex than what we've provided in our series, and we hope you'll take the time to investigate further with an attorney who specializes in employment law.

Once you've noted which positions in your company fall under each category, you can begin keeping records for each employee.  Remember the Department of Labour auditors can review your timekeeping and payroll records at any time.  If you're found in violation of the FLSA, you could face steep penalties.

Here are the basics to keep your records on track:

Exempt Employees

  • Identifying information including employee’s name, home address, occupation, gender, and birth date if under 19 years of age
  • Time parameters defining the employee’s work week
  • Wages paid for the pay period
  • Date paid and the corresponding pay period
 

Non-exempt Employees

  • Identifying information including employee’s name, home address, occupation, gender, and birth date if under 19 years of age
  • Time parameters defining the employee's work week
  • Total hours worked per day and week
  • Total straight-time earnings
  • Regular hourly pay rate during any week that includes overtime worked
  • Total overtime paid
  • Any wage deductions or additions

The records described above must be accurate, and kept on file for at least three years.  Supplementary information must be saved for at least two years.

All time and payroll records must be kept at the place of business or in a central storage location.  Whether maintained on paper, in microfilm, or on a computer-based system, the data must be readily available in the event an auditor wishes to inspect them.

Consequences of Non-compliance

The Department of Labor has investigators in 400 offices around the country, who regularly engage in rigorous workplace inspections.  If you don't comply with FLSA regulations, you could be liable for back payments to employees as well as fines and/or criminal prosecution:

  • Firing or discriminating against an employee for filing an FLSA complaint can result in fines up to $10,000.  A second offense can result in a prison sentence
  • Failing to comply with FLSA youth labor laws exposes employers to criminal prosecution and fines up to $11,000
  • Wilful or repeated minimum wage or overtime pay violations may be subject to a civil penalty of $1,100.

Watch for our final chapter on FLSA, Make Timesheets Work for You to see how automated timekeeping software can help you avoid litigation!

Do you have a story to share?  We want to know!

Avatar
ABOUT THE AUTHOR
Replicon
Replicon provides award-winning products that make it easy to manage your workforce. With complete solution sets for client billing, project costing, and time and attendance management, Replicon enables the capture, administration, and optimization of your most underutilized and important asset: time.
Get started today.
Set up a free trial based on your business needs. Start Free Trial

Global Compliance Desk – Vietnam

New Draft Version of Vietnamese Labor Code Released A new draft of the proposed Labor Code has recently been released by the Ministry of Labor, War Invalids and Social Affairs (MOLISA).…Read More

Global Compliance Desk – Netherlands

Employment Law Changes 2020 What’s New: The Dutch Senate adopted new legislation to bring the labor market into balance effective January 1, 2020. The new legislation aims to reduce the…Read More

5 Emerging Global Payroll Trends

Global Payroll Management Institute | September 04, 2019 By Lakshmi Raj, Co-Founder and Co-CEO, Replicon With every new advent in technology and the web, the world gets a little smaller…Read More

Consulting firms: 4 ways to improve billing & get paid on time

At the end of the day, your consulting firm relies on the assumption that a good percentage of clients will honor their payments promptly and accurately. In the professional services…Read More

5 ways to improve service delivery in your organization

In a highly competitive market, service-based businesses need to capitalize on any opportunity to set themselves apart from their (often very similar) competitors. While implementation, system details, and service management…Read More

Demystifying the millennial workforce: 5 tips from Trunk Club’s Andrew Anderson Devine

Time magazine labels the millennial generation the “most threatening and exciting generation,” infamous for “narcissism [and] its effect: entitlement.” In the workplace, the perception of the millennial workforce is no…Read More
  • Cloud
  • In The News
  • Corporate
  • Professional Services Management
  • Project and Program Management
  • Shared Services Management
  • Time and Attendance Management
  • Workforce Management
  • Customer Feature
  • Feature Update
  • Time Intelligence
  • Industry News
  • Webinar Recap
  • Global Compliance Updates
  • Chat with us
    How can we help you?