As a business owner, you are probably aware that you need to keep very accurate financial records. What you may not know is that you also must keep accurate records of employee timekeeping data. And these records must be retained for two full years after an employee leaves the company. The DOL lists the records employers must retain as:
Don’t shred those time sheet records!
Did you know that you are required to retain your employee’s time records for at least 3 years? After terminating an employee, the temptation might be to dispose of the records but, in fact, you must keep them.
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.” from dol.gov
Timesheets.com doesn’t delete records and we’re the only time tracking service out there that allows company access to them even if you cancel service. We know these records are important and that a company might need them in case of a lawsuit so we make it easy for you to access them when you need them.
Just because you quit using paper time sheets and now record everything online, you don’t have to give up employee signatures. You can still print out employee time cards the old fashioned way as PDFs or your can simply have your employees electronically sign each record on their time sheet.
Web based time tracking includes electronic signatures, each record is stored with the employee verification attached to it.
Timesheets.com was designed to track time but it can also record jobs as an instance of work done, ignoring the hours and minutes all together.
For some businesses this is important because not every company, team, or freelancer needs to track the time they spend on projects. Sometimes, just tracking the project itself is all that is needed for billing.
Stringent record keeping is probably a company’s best defense against claims made by employees for payroll violations and allegations such as discrimination (age, sex, race, disability) and wrongful termination.
Cases against employers are on the rise in this country and it’s just not wise to assume that “it will never happen to me”. From time to time tenured employees turn on employers. Sometimes brand new employees quit and file complaints. And sometimes even potential employees file discrimination charges.
Keeping time records and human resources records can help protect employers in these cases.