How long to keep time cards is one of those questions nobody thinks about until they open a storage closet. Maybe you just found a dusty box of old punch cards behind the supply shelf, and you're wondering whether it's safe to shred them or whether you'll need them someday.
Here's the short answer. Under the federal Fair Labor Standards Act (FLSA), keep time cards for at least 2 years and payroll records for at least 3 years (as of October 2026).
The rest of this article explains which records fall under which rule, what counts as a time record, and simple ways to store paper and digital records so they're easy to find when you need them.
The Short Answer: How Long to Keep Time Cards
According to the U.S. Department of Labor's Fact Sheet #21, the FLSA sets two minimum retention periods:
- 2 years for time cards and other records your wage calculations are based on
- 3 years for payroll records
The difference comes down to what the record does. A time card is the raw input: it shows when someone clocked in and out. Payroll records are the output: what you paid each employee.
If you only remember one thing, remember this: the time cards behind a paycheck have a 2-year minimum, and the payroll records have a 3-year minimum.
Both are minimums. Nothing in the federal rule stops you from keeping records longer, and as you'll see below, there are good practical reasons to do that.
The Two FLSA Retention Rules, Side by Side
FLSA record retention is easier to manage when you can see both rules in one place:
| Record type | Minimum retention | Examples |
|---|---|---|
| Payroll records | At least 3 years | The payroll records you keep for your employees |
| Records wage computations are based on | 2 years | Time cards, wage rate tables |
Payroll records: at least 3 years
The Department of Labor's fact sheet says employers must preserve payroll records for at least three years. Treat this as the floor for anything that shows what you actually paid your team.
A good habit is to file payroll records by year. That way, when a year passes the 3-year mark, you know exactly which folder or box you're looking at.
Time cards and wage computation records: 2 years, counted from the date of last entry
Time cards, wage rate tables, and similar records that you used to compute pay are kept for 2 years. The federal regulation behind this, 29 CFR 516.6, says time cards are counted from the date of last entry.
In practice, the clock starts on the last date written on the card, not the day you filed it in a box. If a card's last punch is in December, count 2 years from that December date.
What Counts as a Time Record?
When people talk about employee time records retention, they usually mean the records that logged daily hours and were used to work out pay. The DOL's examples include time cards and wage rate tables.
A useful test: if you looked at it to figure out what someone should be paid, treat it as a time record and keep it for at least 2 years.
Here's some good news for small businesses: the FLSA doesn't require any particular timekeeping system. According to the DOL, employers may use any timekeeping method they choose, as long as the records are complete and accurate.
That means all of these can work:
- Paper punch cards
- A traditional time clock
- A tablet time clock app
What matters is the result, not the tool. Every shift should be recorded, and the hours should be right. Missing punches, guessed clock-out times, and cards filled in from memory at the end of the week are what cause trouble, whatever system you use.
Why Keeping Records Longer Can Save You Trouble
The DOL's fact sheet says these records must be open for inspection by Wage and Hour Division representatives. If someone asks to see them, you want to find them quickly and hand over something complete.
That's why many small businesses use a simple rule of thumb: keep everything for 3 years. It isn't a legal requirement for time cards; the federal minimum for those is 2 years. But one retention date for all pay-related records is easier to remember than two. You'll never have to wonder whether a box holds time cards or payroll records before deciding what to shred.
One important caution: the federal FLSA isn't the only rule that may apply to you. State laws and other federal programs, such as tax recordkeeping, may require you to keep some records longer. Before you shred anything, check with your state labor department or a trusted advisor such as your accountant or an employment attorney.
Paper vs. Digital: Simple Ways to Store Time Records
Paper punch cards
If you still use paper, a little organization goes a long way:
- Box them by pay year. One box per year keeps things simple.
- Write a "keep until" date on the outside. Work it out when you seal the box, so future-you doesn't have to.
- Store them somewhere dry and locked. Damp basements and unlocked back rooms are where records get damaged or go missing.
Tablet time clock apps
Digital records are easier to search, but they still need a filing habit:
- Export to CSV/Excel after each pay period. Make it part of your payroll routine.
- Save the files in a shared folder organized by year and month, for example
Time Records/2026/10. - Keep the device's OS backup turned on. If the tablet is lost or damaged, the backup helps you restore your data.
Don't treat the tablet itself as your long-term archive. The exported files in your folder are your records; the device backup is a safety net.
Quick Checklist
- Know the FLSA record retention rules: 2 years for time cards, at least 3 years for payroll records
- Save a CSV/Excel export every pay period
- Label every box or folder with a "keep until" date
- Check your state rules and any other requirements that may apply
- Store records where you can produce them quickly for an inspection
Time Clock App turns one shared tablet at your entrance into a time clock. Hours export to CSV/Excel, so filing your records each pay period is quick, and reminder notifications help prevent missed punches. You can use every feature free for one member, or try full team operations with unlimited members free for 30 days.
Get Time Clock App today
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