What qualifies a timekeeping system as reliable and FLSA-compliant?

The duty is solely on an employer to maintain accurate records of hours worked by employees. Many employers utilize timekeeping systems to record wage and hour data. This data often features prominently in the analyses performed by economic and statistical experts in litigation involving claims of wage and hour violations.

What is the difference between timekeeping systems that provide employers with reliable records, and timekeeping systems that increase the likelihood of a company facing employment litigation?

There are a number of aspects of timekeeping systems that may be cited as evidence of an employer’s attempt to discourage accurate time reporting. Timekeeping systems that are not user-friendly, or those with outdated technology could be interpreted as an attempt by an employer to encourage under reporting or mis-reporting of employees’ time. A timekeeping system that lacks up-to-date benefit accrual and pay rules can produce inaccurate overtime earnings or incorrectly deem employees as ineligible for family medical leave.

Systems that allow employers to customize timekeeping to their specific pay rules, benefit plans, and vacation and leave policies are better suited to capturing FLSA-compliant data. Additional features that increase the reliability of a timekeeping system include error detection, user-friendly interfaces, ease of access, and the utilization of physical time clocks into the system. Regular auditing of timekeeping policies and processes can assist an employer in ensuring the capture of reliable wage and hour information.