In the United States, employers covered by the Fair Labor Standards Act (FLSA) generally must keep time cards and other records used to calculate wages for at least two years. Keep payroll records, such as wage rates and total pay, for at least three years; state rules, contracts, or a legal hold may require a longer period.
The Federal Recordkeeping Baseline
The federal distinction is between records showing how wages were computed and records documenting the payroll result. Under the FLSA, employers generally retain the first category for two years and the second for three. A time card belongs in the two-year category when it records hours or other information used to calculate an employee’s pay.
Examples of records commonly kept for at least two years include time cards, work schedules, and records showing additions to or deductions from wages when those records are used to determine pay. Payroll records generally kept for at least three years include the employee’s name and address, occupation, pay basis, regular rate, hours worked, total wages for each pay period, and the dates covered by each payment. The exact record set depends on how the employer tracks and calculates compensation.
These are minimum federal periods, not a recommendation to destroy records as soon as the period ends. A longer retention period may be sensible or required under state or local law, a contract, a government contract, a company policy, or a pending investigation or claim. The rules also apply according to the employer’s legal coverage and the type of record, so do not assume that every document in a personnel file has the same deadline.
What Counts as an Employee Time Card?
“Time card” can mean a paper punch card, a signed timesheet, a spreadsheet, an electronic clock-in record, or an export from a scheduling or payroll system. The format does not change the record’s basic purpose: documenting when an employee worked so the employer can determine hours and wages. If a supervisor edits a time entry, the original entry and the correction history may also help explain how the final hours were calculated.
Records can be spread across several systems. For example, a worker might clock in through a kiosk, request a correction through a manager, and receive pay through a separate payroll process. An employer should be able to connect the time record to the relevant pay period and payroll result. Keeping only a final total, without enough underlying information to show how it was reached, may make it harder to answer questions about a paycheck or demonstrate that hours were recorded accurately.
Not every employee has the same timekeeping requirements. Employers generally need to maintain the FLSA records applicable to each worker’s pay arrangement. For some salaried, exempt employees, federal rules do not require the same daily hours records required for nonexempt employees, though other records or state rules may apply. Employers should not treat a job title or salary alone as proof that an employee is exempt.
When Does the Retention Period Start?
The practical starting point is the creation or use of the record, but the exact application can depend on the record type and the regulation that governs it. Employers commonly organize time cards by employee and pay period, then retain each record for at least the applicable minimum period measured from the date it was made or the relevant payroll event. Because records may be audited or requested after a pay period closes, a retention schedule should specify a clear date rule rather than relying on memory.
For example, suppose a weekly time card records hours worked during the week ending March 8, and payroll for that week is paid on March 14. The employer should identify the time card as a two-year record and the corresponding payroll detail as a three-year record, then apply its documented retention method consistently. If the organization is unsure whether a particular document is a time record or payroll record, retaining it for the longer period is often a simpler administrative choice, provided the organization’s privacy and records policies allow it.
Do not confuse a record-retention deadline with the deadline for bringing a wage claim. Those are different legal questions, and a claim, audit, or investigation can make records important beyond a routine schedule. If a dispute or agency inquiry arises, suspend ordinary deletion for relevant records and seek guidance from a qualified professional.
State Rules and Special Situations
Federal law is only the starting point. States and local jurisdictions may set their own wage-record requirements, and the required periods or record details can vary. An employer with workers in more than one state should check the rules for each work location rather than adopting the shortest period it finds. Remote work can make this especially important because the employee’s work location may matter even when payroll is processed elsewhere.
Some industries and arrangements can bring additional recordkeeping obligations. Government contracts, collective bargaining agreements, grant conditions, and particular wage programs may require records to be kept longer or in a specified form. Records relating to leave, workplace accommodations, benefits, immigration verification, or safety incidents also have their own rules and should not automatically be filed under the time-card retention period.
A useful policy can set a standard period that satisfies the longest applicable routine requirement for the organization, then define exceptions for legal holds and special programs. The appropriate period depends on the employer’s locations and obligations; there is no single number that automatically covers every employee record in every situation.
Paper, Electronic, and Corrected Time Records
Federal recordkeeping generally does not require employers to use a particular time-card format. Paper and electronic records can both work if they are accurate, complete, accessible, and maintained for the required period. Electronic storage can make searching and backup easier, but it is not useful if the employer cannot open an old file, identify the employee, or explain a change made to an entry.
Good electronic controls preserve the record’s meaning over time. Keep a readable export or report, retain relevant audit trails, and make sure the file includes the pay-period dates and employee identifiers needed to interpret it. If a vendor or internal system is replaced, plan to export records before access ends. A screenshot or summary may not preserve all the detail contained in the original timekeeping record.
For paper records, protect files from damage and limit access to people who need them for payroll, compliance, or a legitimate business purpose. If records are scanned, confirm that scans are legible and backed up before destroying originals under an approved policy. Whether an original must be retained can depend on the record and applicable rules, so do not assume scanning alone settles that question.
Build a Retention and Disposal Process
A reliable process makes retention routine rather than a last-minute search. Employers can start with an inventory of where records live, who owns them, and what period applies. Then connect the schedule to pay periods or record dates so staff can tell when ordinary destruction is eligible. A retention calendar should also state who can approve destruction and how to pause it when a hold applies.
- Identify record types. Separate time cards and supporting wage-calculation records from payroll summaries, personnel records, and other documents.
- Check applicable requirements. Review federal, state, local, contract, and program obligations for the places and workers involved.
- Set the period and trigger. Write down the minimum period and the date from which the organization calculates it.
- Protect records during storage. Use access controls, backups, consistent naming, and a way to retrieve records by employee and pay period.
- Pause routine disposal when needed. Preserve relevant records if a complaint, audit, investigation, or lawsuit is pending or reasonably anticipated.
- Dispose of eligible records securely. Follow the organization’s approved destruction method and document the disposal where appropriate.
For a small employer, a structured folder system and a written schedule may be enough. A larger organization may need a central records process because time data, payroll, and employee files are managed by different teams. In either case, test whether someone can retrieve a sample time card and its related payroll record without relying on the employee who originally handled it.
Common Retention Mistakes
- Keeping every record for only two years. That can be too short for payroll records that generally have a three-year federal retention period.
- Keeping only payroll totals. A total paid does not necessarily show the hours and calculations that produced it. Preserve the underlying records required for the applicable period.
- Deleting records when changing systems. A software migration or vendor change does not remove an employer’s existing recordkeeping obligations.
- Overwriting corrections. If an entry changes, retain enough information to explain the correction, who made it, and when, consistent with the system and applicable rules.
- Using one schedule for every employee document. Time cards, payroll details, tax records, personnel files, and immigration forms can have different requirements.
- Destroying records during a dispute. Routine deletion should stop for relevant material when a legal hold or investigation applies.
Over-retention is not automatically harmless, either. Storing personal information indefinitely can increase security and privacy risks and make records harder to manage. The goal is a documented schedule that meets applicable requirements, preserves records when needed, and disposes of them securely when the retention period and any holds have ended.
Employee Time Card Template
| Date | Employee name | Start time | End time | Unpaid break | Total hours | Employee initials | Supervisor approval |
|---|---|---|---|---|---|---|---|
Sample — fictional details: April 7 | Jordan Sample | 9:00 a.m. | 5:30 p.m. | 30 minutes | 8.0 | JS | M. Example
Use one row per workday and add fields for multiple shifts or job codes when needed. This sample is only a basic timekeeping aid; it does not replace records required by applicable law or an employer’s payroll process.
Frequently Asked Questions
Is the federal minimum for time cards two years or three years?
Time cards used to calculate wages generally fall under the two-year federal period for wage-computation records. Payroll records generally have a three-year period. Keep longer when another applicable requirement or hold calls for it.
Do employers have to keep paper originals?
Not necessarily in every situation; electronic records can be used if they meet applicable requirements and remain accurate, readable, accessible, and complete. Check rules that apply to the specific record before disposing of an original.
How long should an employee keep personal copies of time cards?
Employees may find it useful to keep their own pay stubs, schedules, and time records while they are relevant to checking pay or resolving a question. The employer’s legal retention duty is separate from an employee’s personal filing choice.
Can an employer delete time cards after two years?
Only if the applicable retention period has ended and no state rule, contract, special program, audit, investigation, or legal hold requires preservation. The two-year federal minimum is not permission to delete records that must be retained longer.
Do exempt employees need time cards?
Federal FLSA recordkeeping requirements differ by employee classification, and many exempt employees are not subject to the same daily hours-record requirement as nonexempt employees. Other laws, employer policies, or payroll practices may still call for tracking time, and classification should not be based on title alone.
Choosing a Sensible Retention Period
For a straightforward U.S. starting point, retain time cards and supporting wage-calculation records for at least two years, and payroll records for at least three years. Before setting a final schedule, compare that baseline with the rules for every location and any contract or special program that applies. Then document the process, keep records retrievable, and pause disposal when a dispute or investigation makes preservation necessary.
If your organization’s situation involves a specific wage dispute, government inquiry, or uncertain state requirement, ask a qualified employment professional for guidance.