Understanding Time Card Basics and Legal Compliance
Accurate time card management is crucial for payroll compliance and avoiding costly legal issues. Under the Fair Labor Standards Act (FLSA), employers must pay non-exempt employees at least the federal minimum wage of $7.25 per hour, and overtime at 1.5 times the regular rate for hours over 40 in a workweek. Compliance with these regulations ensures fair compensation and prevents legal disputes.
Employers are also required to maintain detailed records. Payroll records must be preserved for at least three years, while records used for wage computations, such as time cards and work schedules, should be retained for two years. This comprehensive record-keeping helps protect against disputes and audits.