Under the Fair Labor Standards Act (FLSA), dealerships must make, keep, and preserve records. Although no particular order or form is prescribed, records must list information in detail. Well-documented records and timekeeping are very important since controversies often are resolved in favor of employees when necessary documentation is lacking. Note: state laws may require additional records to be kept and/or may specify longer record retention periods. In addition to the following FLSA records, it is recommended that detailed job descriptions and written pay plans be maintained for all employees. See [I]NADA Descriptions Now! Blueprint for Dealership Job Descriptions. [/I]
Keep the following records for employees entitled to both minimum wage and overtime:
1. Full name and employee symbol or number identifier used on any records
2. Social Security number
3. Home address (including zip code)
4. Date of birth if under 19 years of age
5. Sex and occupation
6. Time and name of day on which employeeês workweek begins
7. Regular hourly rate of pay and basis on which wages are paid
8. Hours worked each workday and total hours worked each workweek
9. Total daily or weekly straight-time earnings or wages
10. Total weekly overtime excess compensation
11. Dates, amounts, and nature of additions and deductions to wages
12. Total wages paid each pay period
13. Date of payment and the pay period covered by the payment
Limited records must be kept for exempt employees.
. For employees covered by the white collar and [I]outside salesmen[/I] exemptions, maintain and preserve all of the items listed above except for 6 through 10. Note the basis on which wages are paid for each pay period to permit a calculation of total remuneration, including fringe benefits and perquisites.
. For [I]salesmen, partsmen, and mechanics,[/I] maintain and preserve all of the items listed above except for 6 and 9. Keep data and information regarding the basis on which wages are paid.
. For [I]commission employees[/I], maintain and preserve all of the items listed above except for items 6, 8, 9, and 11. Note if individuals are [I]commission employees[/I] and keep copies of employment agreements showing the basis of compensation, the length of the agreement, and the date entered into.
Dealers must preserve these and other records for at least two to three years, depending on the type of record. For more details, or for more information on the FLSA, see NADAês [I]A Dealer Guide to the Fair Labor Standards and Equal Pay Acts[/I] (from which this article is excerpted). You can order this and other publications and products through NADA Management Educationês quarterly catalog or online at www.nada.org/mecatalog.
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