Time and payroll records: what to keep and for how long

A clear checklist of the records the FLSA expects, retention periods to know, and a simple way to keep everything organized.

In shortUnder the FLSA, employers must keep payroll records for at least three years and supporting records such as time cards, work schedules and wage rate tables for at least two years. Records must show, among other things, hours worked each day and each workweek for non-exempt employees. Tax, immigration, benefits and state rules often require longer periods, so many employers keep everything for the longest period that applies.

Why records matter

Good records are your evidence. If an employee or a government agency questions hours or pay, the employer is expected to produce accurate records. Where records are missing or unreliable, the employee’s reasonable estimate of hours may be accepted. That alone is a strong reason to keep complete, consistent time data. Our article on the risks of not tracking hours explains more.

What the FLSA requires

The DOL’s recordkeeping regulations (29 CFR Part 516) list the information to keep for each non-exempt employee. In summary:

The FLSA does not require a particular form or a particular time clock. Records can be electronic, as long as they are accurate, complete and available for inspection.

How long to keep them

Common US retention periods (summary)
Record type Typical minimum Source of the rule
Payroll records (the items listed above) 3 years FLSA
Time cards, work schedules, wage rate tables, records of additions and deductions 2 years FLSA
Employment tax records At least 4 years IRS guidance
Form I-9 3 years after hire or 1 year after employment ends, whichever is later USCIS
State wage and hour records Varies; often 3 to 6 years State law

This table is a summary, not a complete list. Other laws, such as those on benefits, leave and discrimination, can add requirements, and a pending claim usually means you must keep relevant records until it ends. Confirm current periods with the agencies and a qualified professional.

Records for exempt employees

For exempt employees, the FLSA does not require hour-by-hour records, but you still need payroll information such as pay, pay dates and deductions. Many employers also track attendance and time off for exempt staff to manage leave balances and plan coverage.

Edits and corrections

Records are only trusted if changes are controlled. When a time entry is corrected, for example after a missed punch, keep the original, the corrected value, who made the change, when and why. Ask employees to confirm corrections to their own time. An audit trail like this protects both sides and shows that edits were made in good faith.

A simple retention routine

  1. Decide where each type of record lives: time system, payroll provider, HR files.
  2. Set one retention period per record type, using the longest rule that applies to you.
  3. Make sure records can be exported in a readable format, such as spreadsheet or PDF, at any time.
  4. Restrict access to personal data and keep a backup.
  5. Once a year, check that the retention schedule is followed and securely delete only what is past every applicable period and not involved in a claim.

Keeping records with EZTime

EZTime keeps clock-ins, clock-outs, breaks, schedules and time-off requests in one cloud account, with a history of edits made by managers. Reports can be exported for payroll and for your own files, and the digital employee file helps keep HR documents in one place. You stay in control of how long you keep exported records and where they are stored.

Paper vs. digital records

Paper time sheets and punch cards are still legal, but they are harder to keep complete. Cards get lost, handwriting is unclear, and totals are added by hand. Finding one employee’s hours from two years ago can mean opening boxes in a storage room. Paper also makes it hard to prove when a change was made and by whom.

Digital records solve most of these problems: each punch has a timestamp, totals are calculated the same way every time, and records can be searched and exported in minutes. If you move from paper to a digital system, keep the old paper records for the full retention period, and note the date the new system started so there is no gap.

Whatever you choose, think about what happens if your system or provider changes. Export a full copy of historical records before you switch, and check that you can open it without the old software.

Common mistakes

Each of these is easy to fix with a clear routine and a time system that keeps detail and history.

Frequently asked questions

How long must I keep time cards?

Under the FLSA, at least two years. Payroll records must be kept at least three years. Other rules may require longer.

Can time records be electronic?

Yes. The FLSA does not require a specific format, as long as records are accurate, complete and available for inspection.

Do I need to keep records of edits?

Keeping a clear history of corrections is strongly recommended. It shows how and why a record changed.

What about records for former employees?

The same retention periods apply after employment ends. Do not delete records early.

Do I need hour records for exempt employees?

The FLSA does not require daily hours for exempt employees, but you still need payroll records.

Where should records be kept?

Records should be kept in a safe place where they can be produced for inspection, usually at the workplace or a central office, or in an electronic system that can produce them quickly.

Where to go next

Related guides and tools

Hand payroll clean hours

Approved hours leave EZTime as payroll-ready Excel or PDF reports for whoever runs your payroll. See current plans and what each one includes on the pricing page.

Disclaimer: This guide is general information only and is not legal, payroll or tax advice. Federal, state and local rules vary and change over time, so check current requirements with the Department of Labor, your state labor agency or a qualified attorney or payroll professional before making decisions. Examples are fictional.