Management need not keep hours-worked records for employees who
qualify for one of the federal Fair Labor Standards Act's
Section 13(a)(1) executive, administrative, professional,
outside-sales, and derivative exemptions. 29 C.F.R. §
516.3. Of course, employers may nevertheless
maintain those records for such employees if they wish, and
some do.
However, one aspect of the U.S. Labor Department's
revised compensation requirements for these "white
collar" exemptions could mean that some employers will have to
keep records of at least some of these exempt employees' hours
worked. So why might that be the case?
"10% Credit" Ramifications
When USDOL's revisions take effect, employers will be
permitted to (i) pay as little as 90% of the new $913 salary
threshold for up to a 13-week period, and (ii) rely upon
nondiscretionary bonuses and other incentive payments to provide
the other 10% (except for "highly compensated"
employees). 29 C.F.R. § 541.
602(a)(3)(ef
