Must we track hours for exempt salespeople? — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Must we track hours for exempt salespeople?

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in Small Business Tax Deduction Strategies

Q. We have salespeople who work on a straight commission basis. Do we need to track their hours?

A. Yes. The regulations applicable to the Fair Labor Standards Act require employers to maintain and preserve payroll and other records, such as the hours worked each workday and total hours worked each workweek.

With respect to commissioned employees of a retail or service establishment, there are some exceptions and some additions to the records requirements (29 C.F.R. § 516.16), but nothing that changes the requirement to keep records of the hours worked each day and each workweek.

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