Introduction to the Fair Labor Standards Act (FLSA)

For overtime, the DOL regulations contain the following general rule:

The general rule is that overtime compensation must be paid on the regular pay day for the period in which such workweek ends. 211

The regulations provide a narrow exception this rule when the correct amount of overtime compensation cannot be determined until some time after the regular pay period. In that case, the excess overtime compensation must be paid no later than the next pay day. 212 An employer may not establish an inefficient payroll system and rely on the exception in the regulations to pay overtime after the payday on which regular wages are due. 213

Failure to timely pay wages due will subject the employer to liability for liquidated damages, even if the employer pays the employees at a later date. 214

R ECORD K EEPING

S ECTION 8

A. I NTRODUCTION The Act requires every employer to “make, keep and preserve such records of the persons employed by him and of the wages, hours and other conditions and practices of employment” of such employees. 215 The duty to keep accurate records is the absolute duty of the employer and may not be delegated to the employee. However, the information that must be recorded is typically contained in the following types of agency records: employee personnel files, payroll records and/or work unit employee time records.

B. I NFORMATION R EQUIRED FOR N ON -E XEMPT E MPLOYEES

Employers must maintain records containing the following information in regard to each non-exempt employee:

 Name or identification (e.g., personnel file, payroll records, time sheets);



Home address (e.g., personnel file);

 Date of birth if under 19 (e.g., personnel file);

 Sex and occupation (e.g., personnel file);

 Time of day and day of week on which employee’s FLSA workweek begins (e.g., personnel file, payroll records, time sheets);  Base hourly rate of pay for any week when overtime is worked and overtime compensation is due, along with the basis on which wages are paid (e.g., $20/hour, $800/week, $3466.67) and the amount and nature of each payment excluded from the “regular rate of pay” (e.g., personnel file, payroll records);

Introduction to the Fair Labor Standards Act (FLSA) ©2020 (s) Liebert Cassidy Whitmore 40