Will tracking exempt employees' hours jeopardize exemption status?

Will tracking exempt employees' hours jeopardize exemption status?

It has long been a popular belief that keeping track of exempt employees' hours could jeopardize exempt status. This is not true, however. The FLSA's regulations do not limit an employer's ability to track working time. Consequently it is not a violation of the FLSA for employers to track working time, even for exempt employees.

While the act of tracking has no effect, if the employer uses the timekeeping records to make improper deductions from pay, problems may arise. So, as long as improper deductions are not made and the employee continues to be paid on a salary basis, tracking time is permissible.

Reprinted with permission. © CCH

 Will tracking exempt employees' hours jeopardize exemption status? It has long been a popular belief that keeping track of exempt employees' hours could jeopardize exempt status. This is not true, however.

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