Wage and Hour Timekeeping Audit Checklist

Inspection template for auditing timekeeping, overtime, meal and rest breaks, and off-the-clock work against FLSA and applicable state wage-and-hour requirements.

Audit Scope and Employee Sample

• Audit period documented
  Record the start and end dates of the payroll period(s) reviewed.
• Employee sample size captured
  Enter the number of employees and time records reviewed.
• Work locations and departments identified
  Select all locations or departments included in the audit.
• Applicable state wage-and-hour rules considered
  Confirm whether state-specific overtime, meal break, rest break, and recordkeeping rules were reviewed in addition to FLSA requirements.

Timekeeping Record Accuracy

• Clock-in and clock-out times recorded for each shift
  Each shift reviewed shows complete start and end times, including meal periods where applicable.
• Manual edits are supported by documented reason and approval
  Any timecard edits, overrides, or exceptions have a documented explanation and supervisor or payroll approval.
• Missed punches or exceptions are resolved before payroll close
  Missed punches, duplicate punches, and other exceptions are corrected in a timely manner before wages are paid.
• Time records match payroll hours paid
  Recorded hours worked align with hours paid, including regular time, overtime, and premium pay where applicable.
• Timekeeping system captures all work locations and mobile work
  The system captures work performed away from the primary worksite, including travel time, remote work, and offsite assignments when compensable.

Overtime Calculation and Approval

• Overtime hours calculated using the correct workweek
  Overtime is calculated on a fixed, recurring 7-day workweek and not averaged across multiple weeks.
• Overtime premium paid for all hours over 40 in the workweek or as required by state law
  Employees received the correct overtime premium for all applicable hours, including any state-specific daily overtime rules.
• Overtime approval process is documented
  Supervisory approval requirements exist for overtime, but payment is still made for all hours worked even if approval was not obtained.
• Blended or multiple rates handled correctly
  When employees worked at more than one rate, the overtime rate was calculated correctly using the applicable regular rate method.
• Bonus, shift differential, and nondiscretionary pay included in regular rate when required
  Nondiscretionary compensation is included in the regular rate calculation for overtime where required.

Meal and Rest Break Compliance

• Meal periods are recorded separately from hours worked
  Meal periods appear as distinct unpaid or paid entries and are not blended into working time.
• Meal period length meets applicable legal and policy requirements
  Meal periods meet the minimum duration required by company policy and any applicable state law.
• Meal periods are duty-free or properly paid if interrupted
  Employees are fully relieved of duty during unpaid meal periods, or the meal period is paid when work interruptions occur.
• Rest breaks are provided and paid where required
  Rest breaks are available and treated as paid time when required by law or company policy.
• Missed break premiums or corrections are paid when required
  Any required premium pay, make-up pay, or corrective adjustment for missed breaks is documented and paid.

Off-the-Clock Work and Recordkeeping Controls

• No evidence of off-the-clock work
  Interviews, time records, and supervisor practices do not indicate employees performing work before clock-in, after clock-out, or during unpaid breaks.
• Pre-shift and post-shift work is captured and paid
  Time spent on opening, closing, setup, cleanup, security checks, donning and doffing, or other compensable tasks is recorded and paid when applicable.
• Rounding practice is neutral over time
  Any rounding method used does not systematically underpay employees and is neutral on its face and in application.
• Required payroll and time records are retained
  Timecards, payroll registers, edits, approvals, and supporting records are retained for the required period under applicable law and policy.
• Supervisor training on wage-and-hour rules is current
  Managers and time approvers have current training on timekeeping, meal and rest breaks, overtime, and off-the-clock work prevention.