You, the employer, are required to maintain various pieces of information with respect to each employee to whom the FLSA applies. Probably the most important piece of information is the number of hours worked per day.
Here’s where a time & attendance system comes in to facilitate the recording of hours worked accurately as well as maintaining all required records in a safe and accessible location.
As you know, failure to maintain any records or to maintain inaccurate records may expose you to liabilities in an action by an employee or employees for back wages. In such cases, the employer must prove the actual time an employee worked.
The Department of Labor clearly states that where an employer’s records are inadequate or inaccurate, they will rely on the notes, records or memory of the employee in arriving at a determination. Only as a last resort will the Department of Labor adopt an employer’s estimate of the time worked.
Even if you have a time & attendance system in place, make sure that all employees enter their time into the system and that they, or their supervisor, sign off on their time.