Timesheet Compliance / Timesheet Legal Requirements

United States — Federal and State Timesheet Compliance

The Fair Labor Standards Act (FLSA) sets the national baseline for timesheet compliance. Most US employers must track work hours and retain these records according to federal and, in many cases, stricter state rules.

Federal Requirements

Under 29 CFR Part 516, employers must keep:

• Employee identification details (name, address, SSN or ID)
• Hours worked daily and total weekly hours
• Pay rate(s) and total straight-time earnings
• Overtime hours and pay tracked separately
• Additions/deductions from wages
• Total wages paid each pay period
• Payment date and pay period covered

Retention:

• Payroll records — 3 years minimum
• Timesheets and related records — 2 years minimum

The law allows flexibility in format (paper or electronic) as long as records are accurate, legible, and available for inspection by the US Department of Labor (DOL). WebWork automates these recordkeeping needs by logging daily and weekly hours, tracking overtime separately, and providing exportable, audit-ready reports.

State-Specific Rules

States can—and often do—go beyond the FLSA:

• California — Must log all hours worked each day, unpaid meal periods, and provide itemized wage statements; retain payroll records for at least 3 years.
• New York — Requires keeping payroll and time records for 6 years; applies to exempt and non-exempt employees.
• Washington — Strict rules for documenting rest/meal breaks and overtime eligibility.
• Texas — Follows FLSA closely but mandates accurate pay-period records for all employees.

If you operate in multiple states, always comply with the most protective applicable law.

Common US Compliance Mistakes

• Rounding practices that unfairly favor the employer
• Failing to track off-the-clock work (emails, calls outside scheduled hours)
• Not separating overtime records
• Assuming salaried employees don’t need time records (some states require them)

Enforcement and Penalties

The DOL and state agencies can:

• Conduct audits and inspections
• Impose civil penalties
• Require back pay plus liquidated damages
• Refer cases for litigation

Even if pay is correct, poor recordkeeping alone can trigger costly settlements.

Global Timesheet Compliance Overview

While the US has a strong framework, timesheet compliance is a global requirement in various forms. European Union Following the 2019 CJEU ruling (CCOO v Deutsche Bank), all EU member states must mandate an objective, reliable, accessible system to record daily working time. Implementation varies by country; some, like Germany, have already enforced comprehensive daily tracking. Germany: The Federal Labour Court confirmed in 2022 that all working hours must be recorded—beyond just overtime—pending detailed legislation. United Kingdom Employers must keep adequate records to prove compliance with the Working Time Regulations (48-hour average, night work limits, etc.). While reforms are under discussion, the recordkeeping duty remains. Canada Federally regulated employers must keep payroll and hours records for at least 36 months. Provinces have their own, often stricter, rules. Australia Under the Fair Work Act, employers must keep time and wages records (hours worked, overtime, etc.) for 7 years. Records must be accessible for inspection and provided to employees upon request. New Zealand Employers must keep daily records of hours worked in each pay period and the pay for those hours. Singapore Since 2016, employers must maintain detailed employment records, including hours and pay details, under the Employment Act. Japan Employers must monitor and record actual working hours under the Labor Standards Act; records are typically kept for 3 years. India State Shops & Establishments Acts require attendance and working-time registers; requirements vary by state but are universal in scope. Brazil Companies with 20+ employees must record entry/exit times (manual, mechanical, or electronic “ponto”) under the CLT. Mexico Employers must maintain records of working hours and overtime under the Federal Labor Law. South Africa The Basic Conditions of Employment Act requires employers to keep prescribed records of working hours, pay, and leave, and display a BCEA summary.

What Compliant Timesheets Include

• Employee details
• Daily start/end times and total hours
• Meal/rest breaks where required
• Separate overtime entries
• Retention according to jurisdiction
• Legible, accurate, and accessible format

With WebWork, this data is captured automatically through automatic time tracking, eliminating manual errors and ensuring all mandatory fields are covered.

Best Practices for Global Compliance

• Use a digital, audit-ready system that meets the strictest standard in your operating regions.
• Train employees and managers on compliance rules.
• Audit records regularly to spot gaps or errors.
• Stay updated on changes in local labor laws.

Conclusion

Timesheet compliance and legal requirements are a universal obligation, but the rules differ by jurisdiction. In the US, that means understanding both FLSA and state-level laws; globally, it means aligning your system to satisfy the strictest applicable standard. WebWork Time Tracker helps you meet these requirements effortlessly—automating time capture, separating overtime, storing records securely, and making them audit-ready—so your business stays compliant everywhere it operates.