Pay and Benefits

You must keep certain records related to your non-exempt employees’ pay and work hours, regardless of where they perform their work. You don’t need to use a specific form for these records, but they must include certain identifying information about the employee, their hours worked, and their wages earned.

Payroll records, collective bargaining agreements, sales, and purchase records should generally be saved for at least three years. Wage calculation records, such as time cards, wage rates tables, work and time schedules, and records of increases to or deductions from wages should be saved for two years.

You can use any timekeeping method you choose, such as a time clock or allowing employees to track their own work hours, as long as the information is complete and accurate. For employees on fixed schedules, you may keep a record showing the exact schedule of daily and weekly hours and simply note that the worker followed the schedule as required. If a worker is on a job for a longer or shorter period of time than the schedule shows, however, you must note the number of hours they actually worked.