Full-Service HR

For the Record: Employee Recordkeeping

Ella Baker
For the Record: Employee Recordkeeping
Reading time 5 Mins
Published on Mar 3

How many hours per week do you, your managers, or your human resources team spend on employee recordkeeping? Maintaining employee files while ensuring that each one is up to date and properly stored can be a major drain on your time – time that could be spent focusing on growing your business. Noncompliance with government regulations regarding employee recordkeeping can cost you dearly, that’s why it’s important to have a professional human resources partner like Sheakley in your corner. Our full-service PEO and HR solutions allow you to focus on building your business, while our experts ensure that your employee records are maintained properly and that you remain compliant with all federal and state regulations.

Stay compliant with FLSA

The Fair Labor Standards Act (FLSA) has the most extensive requirements for employee recordkeeping, governing the regulations for all payroll records. While the FLSA doesn’t have prescribed forms for the records employers must maintain, all records must include accurate information about the employee, their hours, and wages earned.

In addition to basic information like the employee’s full name, social security number, address, and date of birth, FLSA requires employee records to include the following information:

  • Sex
  • Occupation or specific position
  • Day and time employee’s workweek begins
  • Hours worked each day and total hours each workweek
  • Basis on which employee’s wages are paid
  • Regular hourly pay rate
  • Total daily or weekly straight-time earnings
  • Total overtime earnings for the workweek
  • All additions to or deductions from the employee’s wages
  • Total wages paid each pay period
  • Date of payment and the pay period covered by the payment.

Since these records have to be maintained over the employee’s full length of service with the employer and kept on file for three years, recordkeeping can quickly become overwhelming for many small and medium-sized businesses. As your co-employment partner, Sheakley shoulders the burden of managing, maintaining, and updating employee records and ensuring that the files are always compliant with FLSA regulations.

EEOC and ADEA regulations

In addition to FLSA recordkeeping requirements, the Equal Employment Opportunity Commission (EEOC) and Age Discrimination in Employment Act (ADEA) also have jurisdiction over the employment records that employers must maintain. The records required by the EEOC and ADEA ensure that employees are treated fairly in the workplace and protect your company in the event of a wrongful termination lawsuit.

EEOC regulations require that employers maintain employment records for one year, including applications for open positions. The employee’s application should be included in their employee file, along with all other documents. If an employee is involuntarily terminated or fired, their personnel record must be kept for one year from the date of termination.

ADEA recordkeeping regulations require that employers maintain all payroll records for three years. In addition to those required by FLSA, these records should include information on employee benefit plans, such as retirement and insurance plans, and any written seniority or merit system for the full period that the system was in effect and at least one year following its termination. The ADEA also requires employers to keep all records that explain the basis for employee wage differences due to gender, including wage rates, job evaluations, seniority and merit systems.

EEOC and ADEA regulations help protect workers from discrimination, while the recordkeeping requirements allow employers the opportunity to provide information and evidence regarding pay rates and/or termination. Understanding the important role that these regulations play in protecting both employees and employers, Sheakley’s PEO experts maintain all of your employee records to meet EEOC and ADEA regulations. Our electronic recordkeeping features can save you the time and effort necessary to maintain physical files on your premises. Learn more about how embracing technology can save you time and boost productivity.

Time management solutions

When it comes to tracking employee time, pay rate, and payroll records, the EEOC, ADEA, and FLSA allow employers to use any timekeeping method they choose. While some employers opt for handwritten files or Excel spreadsheets to keep track of an employee’s hours, these methods can quickly become overwhelming.

Sheakley’s PEO gives you and your employees access to our state-of-the-art time management system. Not only does this system ensure that all of your timekeeping records are complete and accurate, it also enables employees to update their contact information and emergency contact form, request time off, or view paystubs anywhere any time. Check out Don’t Get Tripped Up By These Common Compliance Issues to learn more about how a centralized time management system can help keep you on track for accurate and compliant employee recordkeeping.

Solutions to meet all recordkeeping rules

Recordkeeping requirements can vary depending on the governing agency or specific regulation. Keeping track of all of the requirements can be a headache, not to mention the potential liability that could come with purging files too soon or not having all of the information required. Sheakley PEO’s HR professionals have years of experience ensuring that employers are compliant with all state and federal regulations regarding employee recordkeeping.

Schedule your free consultation with a Sheakley PEO professional today. For more in-depth information about PEOs, download our What is a PEO e-book today. Stay up-to-date on all things Sheakley by subscribing to our blog and following us on social media. Join the discussion by commenting below.

You may want to read

See all articles