Time for Employers to Reevaluate Wage-and-Hour Recordkeeping Practices

With all of the media attention surrounding the new Department of Labor (DOL) regulations changes, effective December 1, 2016, not much has been said about the importance of accurate recordkeeping. Now is the perfect time to reevaluate your recordkeeping practices.

The Fair Labor Standards Act (FLSA) requires that all employers keep certain records for all covered employees, including those employees who are exempt from minimum wage and overtime provisions. Point your browser here for more information on what records an employer is required to keep under the FLSA.

Because the new DOL regulations will result in many currently exempt employees being reclassified as nonexempt, employers will need to ensure they are accurately recording all hours worked by nonexempt employees. Many federal courts have found that the burden of maintaining records of hours worked rests with the employer, not the employee who claims to have not been paid properly. When an employer fails to accurately record an employee’s hours worked, the legal presumption is that the employee’s recollection of hours worked prevails.

In light of the attention the DOL regulations changes have garnered among employees and plaintiffs’ attorneys alike, employers would be prudent to ensure that their recordkeeping practices are in line with all federal and state guidelines.