The Fair Labor Standards Act (FLSA) requires that employers track hours worked by nonexempt employees, who typically are paid by the hour. Although you can choose your own timekeeping system, it’s essential that the records you keep are accurate and complete.

Traditional leave plans separate time off into different categories, such as vacation, sick, and personal time. Employees are allotted a specific number of days or hours for each category. The time off, which is based on length of service, must be taken for the allotted purpose.