Tuesday, October 6, 2009

Do you know? Wage and hour recordkeeping

The Fair Labor Standards Act sets certain requirements for what records an employer covered by the Act must keep. For non-exempt employees, an employer must maintain the following records:

  1. Employee’s full name and social security number.
  2. Address, including zip code.
  3. Birth date, if younger than 19.
  4. Sex and occupation.
  5. Time and day of week when employee’s workweek begins.
  6. Hours worked each day.
  7. Total hours worked each workweek.
  8. Basis on which employee’s wages are paid (e.g., “$9 per hour”, “$440 a week”, “piecework”)
  9. Regular hourly pay rate.
  10. Total daily or weekly straight-time earnings.
  11. Total overtime earnings for the workweek.
  12. All additions to or deductions from the employee’s wages.
  13. Total wages paid each pay period.
  14. Date of payment and the pay period covered by the payment.

For exempt employees, employers must keep the records for 1 – 5 and 13 – 14. Additionally, for exempt employees employers must also keep a record of the basis on which wages are paid in sufficient detail to permit calculation for each pay period of the employee’s total compensation.

Payroll records must be kept for three years. Records on which wage computations are based – time cards, wage rate tables, work and time schedules, and records of additions to or deductions from wages – must be kept for two years.

There is no particular form in which the records must be kept, as long as they are maintained and are available for inspection at the request of the Department of Labor.

Ohio has its own recordkeeping requirements, but as long as an employer is compliance with the federal standards should keep an employer compliant with Ohio’s standards.

Presented by Kohrman Jackson & Krantz, with offices in Cleveland and Columbus. For more information, contact Jon Hyman, a partner in our Labor & Employment group, at (216) 736-7226 or jth@kjk.com.