08/06/2026
Inaccurate time records are a unique compliance liability, because you don’t need an actual error to create risk.
You can pay every worker correctly and on time and still lose a wage claim if you can't produce records proving it. Under the Fair Labor Standards Act, workers have two years to file a claim (three if the violation is deemed willful), and the burden falls on the employer to reconstruct timesheets and data.
Paper sign-in sheets or unaudited spreadsheets often can't support your defense.
According to DOL enforcement figures, one construction-specific enforcement push conducted 3,000+ investigations in a year, recovering $36 million for 21,000 workers. The violations included overtime miscalculation, uncompensated travel time, and undocumented breaks.
What’s the solution?
Treat wage and payment records just as you’d treat any other legal documents, integrating them into data sovereignty processes and including them in your backup and disaster recovery plan. That way, if a compliance question arises, you’re ready.