Fair Labor Standards Act (FLSA) The FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments. The statute requires companies and Human Resource departments to maintain certain records. Failure to maintain required records has serious consequences in the event of an audit by the Department of Labor or during wage and hour lawsuits.
What is Required to be retained for 3 years:
Employee information, including name, address, occupation, birth date (if under the age of 19), and gender; complete payroll records, including hours worked, overtime, and wage deductions; certificates; union agreements; written
training agreements; sales and purchase records; and certificates of age for each employee under the age of 18.
What is Required to be retained for 2 years:
Basic employment and earnings records, wage rate tables, actual work completed, additions to/deductions from wages, wage differential payments to employees of the opposite sex/same job, evaluations, job descriptions, and merit or seniority systems.