Is it OK to keep time records for exempt employees?

Yes, but it is generally not recommended. Neither the Fair Labor Standards Act (FLSA) nor California wage orders prohibit requiring exempt employees to track time. However, doing so may create legal risk.

Executive, administrative and professional exemptions require employees to regularly exercise discretion and independent judgment.

Requiring exempt employees to track in-and-out time may undermine the argument that they exercise independent judgment.

If an employee’s exempt status is borderline, timekeeping requirements may increase the risk of misclassification.

Exempt employees are typically high-level employees who are not expected to track hours.

Any deviation from this practice should be reviewed with legal counsel and may warrant reevaluating the employee’s exempt status.

Read about Determining Exempt/Nonexempt Status in the HR Library.