To track employee overtime, keep accurate records of each covered, nonexempt employee’s hours worked each day and each workweek, then use those records to calculate wages. Federal law does not require a time clock or a particular form: a clock, timekeeper, or employee timesheet can work if the records are complete and accurate. A posted schedule can be the baseline for a stable shift, but it cannot replace records of actual hours when work differs.
What the federal FLSA requires you to track
The Fair Labor Standards Act (FLSA) requires covered employers to keep records for each covered, nonexempt worker. The U.S. Department of Labor’s Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act and its Handy Reference Guide to the Fair Labor Standards Act describe the required information. The basic record set includes:
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- Employee-identifying information.
- The day and time the workweek begins.
- Hours worked each day and total hours worked each workweek.
- Pay basis, regular rate, straight-time earnings, and overtime earnings.
- Wage additions or deductions, total wages paid, and the pay-period and payment dates.
These records support both hour tracking and wage calculations. The federal rule focuses on accurate records, not on a particular device or form.
Do employees need a time clock or exact start-and-stop punches?
No. The Department of Labor states in Fact Sheet #21 that employers may use any timekeeping method they choose. Its Small Entity Compliance Guide also says employees entitled to overtime pay are not required to punch a time clock.
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A time clock is an optional way to capture hours, not a compliance guarantee. A timekeeper’s records or employee-maintained timesheets can also be used; whichever method you choose must produce complete and accurate records. The cited federal guidance does not endorse a particular device, app, or software product.
Choose a method that records actual hours and exceptions
Match the tracking method to how work is scheduled, and make sure employees and payroll staff can correct or document deviations. The comparison criteria below are practical considerations based on the recordkeeping duties, not a Department of Labor scoring framework.
| Method | When it can fit | What to check |
|---|---|---|
| Posted schedule plus deviation records | A stable fixed schedule that rarely changes. | Keep the schedule and record actual differences when an employee works more or less than planned. The schedule must not overwrite hours worked. |
| Paper timesheet or employee-written hours | Workplaces where employees can reliably report daily hours and the employer can review them. | Capture accurate daily and weekly totals, document exceptions, and retain records that support payroll calculations. |
| Time clock or digital timekeeping | Teams that benefit from a consistent clock-in and clock-out process, including some mobile or remote workflows. | Check that the system captures actual work, supports corrections, and makes records usable for payroll and retention. A device or app does not by itself establish compliance. |
For a flexible schedule, the Small Entity Compliance Guide says accurate daily totals may suffice; employers do not necessarily have to require exact start and end times. For a stable fixed schedule, the guide allows the schedule to be retained while deviations are recorded. In either case, actual hours—not scheduled hours—must be reflected in the records when they differ.
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Keep daily totals, weekly totals, and payroll records aligned
Use a consistent process to move recorded hours into payroll. Review daily entries and weekly totals, document schedule changes or corrections, and ensure paid hours and wage calculations correspond to the records. This is especially important when an employee works beyond a planned shift or across a changing schedule.
- Set and document the workweek’s start day and time.
- Record daily hours using a time clock, timekeeper, timesheet, or fixed schedule with deviations noted.
- Review actual hours and documented corrections before totaling the workweek.
- Use the verified hours and wage information to prepare payroll records.
- Store the time and wage records for the applicable retention period.
The Department of Labor offers a worker timesheet app and printable work-hours calendar as recordkeeping resources. These are useful alternatives for recording hours, not a representation that they replace an employer’s payroll system.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How long to retain overtime and wage records
Under the federal periods described in the Department of Labor’s Fact Sheet #21, revised July 2008, payroll records generally must be retained for at least three years. Records used to support wage computations generally must be retained for two years; examples include time cards, piecework tickets, wage-rate tables, schedules, and records of wage additions or deductions.
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These are federal FLSA retention periods. Other applicable rules, including state, local, industry, or collective-bargaining requirements, may affect what an employer must keep and for how long.
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This is federal FLSA guidance, not a complete jurisdiction-specific legal checklist. Before applying it as a workplace policy, verify whether the employer and worker are covered, whether the worker is nonexempt, and whether state or local rules, industry requirements, or a collective bargaining agreement impose additional obligations. The Department of Labor’s Small Entity Compliance Guide explains federal recordkeeping methods, but it does not resolve those employer-specific questions.
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