# FLSA Three-Year Record Retention

> Federal requirement under the Fair Labor Standards Act mandating employers keep payroll records, including timesheets, pay rates, schedules, and hours worked, for at least three years, with supporting wage calculation documents retained for two years.

- **URL:** https://myhours.com/articles/flsa-time-tracking
- **Category:** Time Tracking Compliance
- **Tags:** Flsa, Compliance, Record Retention
- **Updated:** 2026-03-19 06:06
- **Canonical page:** https://timetrack.works/it/items/flsa-three-year-record-retention

## Details

## Legal Requirements

The Fair Labor Standards Act (FLSA) mandates specific record retention periods for employment and payroll documentation.

## Three-Year Retention

Employers must keep the following records for at least three years:
- Payroll records
- Time sheets and time cards
- Employee schedules
- Hours worked documentation
- Pay rates and wage information
- Records of additions or deductions from wages

## Two-Year Retention

Supporting documents used for wage calculations must be kept for at least two years:
- Job descriptions
- Performance reviews
- Wage rate tables
- Work time schedules
- Records explaining basis for wage differences

## Digital vs. Paper Records

Both formats are acceptable, but digital time tracking systems offer advantages:
- Automatic retention and backup
- Easy retrieval for audits
- Searchable archives
- Protection against loss or damage
- Reduced physical storage needs

## Compliance Best Practices

- Implement automated backup systems
- Establish clear document retention policies
- Train HR staff on retention requirements
- Use time tracking software with audit trail features
- Conduct periodic compliance audits

## Penalties for Non-Compliance

Failure to maintain proper records can result in fines up to $1,000 per violation, plus potential backpay claims that become difficult to contest without documentation.

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