The best protection against wage and hour claims is accurate, consistent time records combined with clear written policies. Record every start, end and meal break, total hours by workweek, pay overtime at 1.5 times the regular rate, never edit time without a note and the employee’s confirmation, and keep records for at least the federal retention periods. When records are complete, you can answer a claim with evidence instead of estimates.
Under the Supreme Court’s decision in Anderson v. Mt. Clemens Pottery (1946), when an employer’s records are inaccurate or missing, the employee can prove hours worked by reasonable inference, and the burden shifts to the employer. Under the FLSA, employees can recover unpaid wages for two years (three if willful), an equal amount in liquidated damages and attorney’s fees. Good records turn a dispute into a check of the facts. See what happens if you don’t track hours.
Template ideas: employee attendance policy.
| Risk | What the system does |
|---|---|
| Off-the-clock work | Clock-in by app, kiosk or NFC at the real start point; early clock-in rules |
| Missed meal breaks | Break punches and alerts before a violation |
| Overtime errors | Weekly totals, alerts as employees approach overtime, payroll-ready exports |
| Disputed hours | Time-stamped punches with location or tag |
| Edited timecards | Audit trail of who changed what and why |
| Employee agreement | Employees sign attendance reports digitally |
See labor rule alerts and timecard corrections.
A complaint or lawsuit alleging unpaid wages, such as unpaid overtime, off-the-clock work, missed breaks or minimum wage violations, under federal or state law.
Generally two years from the violation, or three years if it was willful. State law may allow more time.
Yes. You must pay for hours worked even if not approved; you can enforce your approval policy through discipline, not by withholding pay.
Federal rules allow neutral rounding, but it is a frequent claim issue, and California law is unsettled. Recording exact time is the safer approach.
Employee confirmation of hours is useful evidence that the record was reviewed. It doesn’t replace paying for all time worked.
Recordkeeping rules and the cost of missing records.
How overtime is calculated, with examples.
Timing, waivers and premium pay.
What employers should do.
Deadlines, roles and a checklist.
This page is general information and isn’t legal advice. If you have received a claim or demand letter, consult an employment attorney.