Record Keeping

What are the record retention requirements under FLSA?

Three Years: Each employer shall preserve for at least 3 years:
(a) Payroll records. From the last date of entry, all payroll or other records containing the employee information and data required under any of the applicable sections of this part, and

(b) Certificates, agreements, plans, notices, etc. From their last effective date, all written:

1. Collective bargaining agreements
2. Plans, trusts, employment contracts, and collective bargaining agreements under section 7(e) of the Act,
3. Individual contracts or collective bargaining agreements under section 7(f) of the Act
4. Written agreements or memoranda summarizing the terms of oral agreements or understandings
5. Certificates and notices listed or named in any applicable section of this part.

c) Sales and purchase records. A record of (1) total dollar volume of sales or business, and (2) total volume of goods purchased or received during such periods (weekly, monthly, quarterly, etc.), in such form as the employer maintains records in the ordinary course of business.

Two Years: Each employer shall preserve for at least two years:
a) Supplementary basic records

1. Basic employment and earnings records. From the date of last entry, all basic time and earning cards or sheets on which are entered the daily starting and stopping time of individual employees, or of separate work forces, or the amounts of work accomplished by individual employees on a daily, weekly, or pay period basis (for example, units produced) when those amounts determine in whole or in part the pay period earnings or wages of those employees.
2. Wage rate tables. From their last effective date, all tables or schedules of the employer which provide the piece rates or other rates used in computing straight-time earnings, wages, or salary, or overtime pay computation.

b) Order, shipping, and billing records: From the last date of entry, the originals or true copies of all customer orders or invoices received, incoming or outgoing shipping or delivery records, as well as all bills of lading and all billings to customers (not including individual sales slips, cash register tapes or the like) which the employer retains or makes in the usual course of business operations.

(c) Records of additions to or deductions from wages paid, including all records used by the employer in determining the original cost, operating and maintenance cost, and depreciation and interest charges, if such costs and charges are involved in the additions to or deductions from wages paid.