Federal, FLSA, and State Requirements for Employers
Employers across the United States are required to retain payroll and HR records for specific periods of time. These requirements are governed by a combination of federal laws—such as the Fair Labor Standards Act (FLSA)—and state-specific regulations, many of which extend retention timelines well beyond federal minimums.
This guide provides a centralized, state-by-state overview of payroll and HR record retention requirements to help employers build compliant, audit-ready retention policies.
Why Payroll & HR Record Retention Matters
Record retention is not just an administrative task—it is a critical compliance function. Employers are often required to produce historical payroll and HR records during:
- Wage and hour audits
- FLSA investigations
- State labor department reviews
- Employee complaints or litigation
- Mergers, acquisitions, or payroll system changes
Failure to retain or access required records can lead to extended audits, back wage calculations, penalties, and increased legal exposure.
Federal Record Retention Requirements (Baseline)
Federal laws establish minimum retention requirements that apply nationwide.
Fair Labor Standards Act (FLSA)
Under the FLSA, employers must generally retain:
- Payroll records: at least 3 years
- Timekeeping and wage calculation records: at least 2 years
These records must be sufficient to demonstrate compliance with minimum wage, overtime, and classification rules.
IRS & Employment Laws
- Payroll tax records: typically 4 years
- Hiring, termination, and personnel records: 1–3 years, longer if a claim is filed
Important: Employers must follow the longest applicable requirement, whether federal or state.
Why State Laws Matter More Than Many Employers Expect
While federal laws establish the floor, state laws often set a much higher bar. Many states require employers to retain payroll and HR records for 4–6 years, and some allow extended lookbacks during enforcement actions.
State agencies may also impose:
- Additional documentation requirements
- Longer statutes of limitation
- Broader audit authority
For multi-state employers, this means retention policies must be designed around the most stringent applicable state rule.
Extended Lookbacks Are Increasing
Wage and hour enforcement has intensified in recent years. The U.S. Department of Labor and state labor agencies increasingly expand investigations when they identify potential systemic issues involving:
- Employee misclassification
- Overtime eligibility
- Minimum wage compliance
- Timekeeping accuracy
As a result, employers are often asked to produce years of historical payroll and HR data, even when the original inquiry covered a much shorter period.
Payroll System Changes Create Hidden Risk
One of the most common compliance failures occurs during payroll or HR system migrations. Historical data may be:
- Left behind in legacy systems
- Archived as static reports
- Partially migrated or inaccessible
When auditors request calculation-level detail—pay rates, hours worked, classification history—summary reports are often insufficient.
A defensible retention strategy must ensure long-term, accessible historical data, even after systems change.
State-by-State Payroll & HR Record Retention
Below is a complete index of state-specific payroll and HR record retention guidance. Each state page outlines retention timelines, audit risks, and how federal FLSA rules interact with state law.
🔎 Select Your State
A–D (all links to state specific pages)
E–L
M–O
P–W
Best Practices for Building a Retention Policy
To reduce audit risk and improve operational efficiency, employers should:
- Retain records based on the longest applicable federal or state rule
- Preserve calculation-level payroll and time data, not just summaries
- Maintain classification and pay rate history
- Ensure historical access survives payroll system changes
- Centralize retention across states and systems
How ResNav Supports Long-Term Compliance
ResNav helps employers preserve historical payroll and HR data required for FLSA and state compliance—even after payroll systems change.
By extracting, structuring, and securely archiving historical data, ResNav enables organizations to:
- Respond quickly to wage and hour audits
- Avoid maintaining costly legacy systems
- Produce defensible records during extended lookbacks
- Reduce compliance risk across all states