Which FLSA records must be kept for two years?

The following FLSA employer records must be preserved for at least two years:

Basic employment and earning records. This requirement extends to all basic material that substantiates the payroll and other records. It includes all basic data used by the employer to set or determine hours of employment, the basis on which employees are paid, and the amounts due. For example, time-earning cards or production cards used in computing hours worked and production for payroll purposes are in this category. These must be kept for two years from the date of last entry.

Wage rate tables. These can be hourly, daily, weekly or pay-period wage rate tables, or piece-rate schedules. They must be kept for two years from their last effective date.

Work time schedules. These include all schedules or tables of the employer that establish the hours and days of employment of individual employees or of separate work forces. These schedules may be in any form, such as notices, company letters, or office memoranda; however, they must be preserved for two years from their last effective date in the same form as they were originally prepared and used.

Order, shipping and billing records. These include all customer orders or invoices, incoming or outgoing shipping or delivery records, bills of lading, and noncash billings to customers, that the employer retains or makes in the course of business. Either originals or copies can be kept, but the copy must be a true one. These records are to be kept for two years from the last date of entry.

Records of additions to or deductions from wages. Records of the actual deductions from or additions to wages of employees are within the three-year preservation requirement. However, substantiating records, such as the individual employee accounts, employers' records that set forth original and operating costs and depreciation and interest charges, and all employer purchase orders, wage assignments to third persons and copies of additions or deduction statements furnished to employees need be kept only two years from the date of last entry.

Reprinted with permission. © CCH