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.
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FLSA Three-Year Record Retention
The Fair Labor Standards Act (FLSA) mandates specific record retention periods for employment and payroll documentation.
Employers must keep the following records for at least three years:
Supporting documents used for wage calculations must be kept for at least two years:
Both formats are acceptable, but digital time tracking systems offer advantages:
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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