The quick guide to federal labor laws on timesheets

Every US company is obliged to track the time of the employees to stay compliant with the Fair Labor Standards Act (FLSA) from 1938. But there is much more than the time tracking in the act.

In the previous article, we delivered a leap into the European legal framework around time and attendance tracking. While in the EU and other European countries it was not obligatory to track time, the situation is vastly different in the US, where the Fair Labor Standards Act made time tracking obligatory since before the Second World War.

History of federal law – Fair Labor Standards Act of 1938

The act was one of these revolutionary pieces of law that transformed society in a way unseen before. Apart from the obligation of tracking the working time and keeping the time record, the act brought numerous improvements to the existing legal framework, including:

• Establishment of a minimum wage, ensuring that every employee receives fair compensation for their labor.
• A cap on the workweek at 40 hours, with a legal requirement that hourly employees should work no more without receiving overtime pay at 150% for any hours beyond this limit.
• Prohibition on the employment of children under 18 years of age in manufacturing and heavy labor, safeguarding young workers from hazardous conditions.
• A ban on employing children under 16 during school hours, prioritizing their education and well-being.

President Franklin Delano Roosevelt called the act “the most important piece of New Deal legislation since the Social Security Act of 1935”.

The origins of this legislation trace back to earlier efforts by Senator Hugo Black in 1932, who proposed a 30-hour workweek. Despite facing strong opposition, this idea set the stage for later reforms, ultimately resulting in the 40-hour workweek as a compromise that balanced the needs and expectations of various stakeholders.

Under the act, employers must keep accurate employee time records, adhering to timesheet submission protocols that are critical for compliance. This includes maintaining time cards without any discrepancies and ensuring there are clear records of when hourly employees are on breaks, as failing to do so could lead to legal action. The timekeeping method to track hours for hourly workers is essential not just for compliance, but also for maintaining fair labor practices.

Overall, the act revolutionized how employee time is managed and reinforced the commitment to keeping employee interests at the forefront of labor policies.

Are timesheets a legal requirement – the basics

The FLSA timekeeping requirements have been here since 1938, yet there were multiple amendments and updates at the U.S. Department of Labor since then. Nowadays, the act has evolved into the cornerstone of the employer-employee relationships, with several exclusions – volunteers and free contractors, just to name the most significant of them.

This guide shows only the time and attendance tracking requirements from the federal law. The source document delivers more detailed information on the matter and statements regarding other aspects of fair labor.

• The basic wage standards – the employee must be paid at least $7.25 per hour worked. There are no holidays, paid time off or mealtime included, and the employee gets paid only for hours worked. Yet, to pay or pay not, the employer needs to track the breaks and time-offs as well.
• Tipping – if the employee is receiving tips during the work worth more than $30 per month, the employer may decide to count the tips into the wage and pay a lower base salary. Nevertheless, the employer needs to pay at least $2.13 of hourly wage. If the tips and the wage combined don’t stack to the minimum wage, the employer’s duty is to deliver the missing part. Thus, apart from tracking the time, the employee, and employer must keep the records of tips to stay compliant.

Labor laws on timekeeping – the paperwork

Labor laws on timekeeping delineate a clear legal requirement for employers to maintain accurate records of employee work hours, ensuring compliance with the Fair Labor Standards Act (FLSA) and other relevant labor laws and regulations. The act specifies the necessary information that must be included in these records, yet it allows the employer the flexibility to choose the most appropriate form of recordkeeping. Whether through paper timesheet templates, an electronic timekeeping system, or time clock rules.

To maintain compliance with the act, the documents must include:

• Personal information, including employee’s name, home address, occupation, sex, and birthdate if under 19 years of age;
• Hour (clock in) and day (date) when the workweek begins, critical for accurate time tracking;
• Total hours worked each workday and each workweek, essential for records of employee work hours;
• Total daily or weekly straight-time earnings;
• Regular hourly pay rate for any week when overtime is worked, a key factor in timesheet compliance;
• Total overtime pay for the workweek, in accordance with wage and hour laws that require employers to pay non-exempt employees 1.5 times their regular rate for overtime hours;
• Deductions from or additions to wages;
• Total wages paid each pay period;
• Date of payment and the pay period covered, important details in timesheet records.

Special information is required for:

• Homeworkers,
• Employees working under uncommon pay arrangements,
• For employees for whom lodging or other facilities are furnished,
• Employees receiving remedial education.

Maintaining a compliant timesheet system not only meets the legal framework but also safeguards employers from legal issues and ensures that employees know their rights and the hours for which they should be compensated. Whether using a computer-based timesheet template or an electronic timekeeping system, it's crucial to keep accurate records of employee hours. These documents play a pivotal role in upholding timesheet compliance and meeting the requirements for recordkeeping stipulated by timekeeping laws. This comprehensive approach to documenting employee timesheet data helps employers track employee hours effectively and ensures compliance with all applicable laws and regulations regarding employee attendance and pay.

Time tracking – Calamari software compliant with federal and state laws

Time tracking can be a complex task, especially when dealing with the intricacies of timesheets, work hours, and the various laws and regulations set forth by the Department of Labor. As businesses grow and the number of hourly employees increases, the challenges of maintaining accurate time records intensify. This is particularly true for non-exempt employees whose pay and working hours are subject to strict timekeeping requirements under both federal and state laws.

Accurate timesheet compliance and employee time management

Calamari software offers a comprehensive solution to these challenges. Its timekeeping system is designed to track employee work hours efficiently using a digital time clock. This ensures that all time card entries are meticulously recorded and easily accessible for payroll processing. By automating the recordkeeping requirements, Calamari helps businesses avoid the pitfalls of manual time tracking, which can be prone to errors and non-compliance with regulations regarding employee time.

Keep FLSA compliance with a reliable timekeeping system

Moreover, the software simplifies the management of work hours through an intuitive platform that supports both employers and employees. With features like the digital time card system, businesses can ensure that every minute worked by an hourly employee is accurately captured and compensated. This compliance with laws and regulations not only safeguards the company against potential legal issues but also builds trust among employees by guaranteeing fair labor practices.

Track employee work hours and improve payroll accuracy

Calamari's capabilities extend beyond just tracking work hours. The software also addresses broader timekeeping requirements, helping businesses stay compliant with the detailed standards set by the Department of Labor. By integrating all aspects of time and attendance into one streamlined system, Calamari significantly reduces the administrative burden associated with traditional timekeeping methods.

Timesheet compliance and leave management – learn more

For more detailed insights into managing time tracking and leave management compliantly, take a look at our HR blog. We delve into the nuances of employee time tracking, exploring the critical role of a robust timekeeping system in meeting the regulatory demands of today's work environment. If you're looking for a reliable, law-compliant solution to simplify your company's timekeeping practices and enhance payroll accuracy, consider exploring the features of Calamari. Don't hesitate to contact us now to discuss how Calamari can make managing your workforce's hours easier and more compliant with every tick of the clock.