Takeaway: Defending against a claim for FLSA violations is difficult when an employer does not keep and maintain proper wage and hour records. Record-keeping requirements are complex and plentiful, and the penalties for noncompliance can be significant. Employers must also comply with the record-keeping requirements of the state or states where they do business.

Citing several points that reveal genuine issues of material facts as to whether an employer's overtime violations were willful, the 6th U.S. Circuit Court of Appeals vacated a lower court's ruling granting an employer summary judgment against a U.S. Department of Labor (DOL) charge of willful violation of the Fair Labor Standards Act (FLSA). Among those was the fact that the employer previously had been warned about its overtime violations.

The employer is one of the largest horse race operations in the United States. It runs four thoroughbred racehorse training and care facilities in three states and employs between 120 and 150 employees. Among the types of employees are grooms and "hotwalkers."

Hotwalkers and grooms work similar hours; both work every day of the week. Some hotwalkers work additional hours in the afternoons every other day. On race days, grooms have an opportunity to earn extra pay if one of their horses is racing. On average, hotwalkers work approximately 44.25 hours per week and grooms work between 48.5 and 52.5 hours per week.

Most of the employees did not submit time sheets for additional...

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