Regardless of how many employees it has, an employer must keep wage and hour records. The courts have made it clear that if the employer does not have records of an employee’s hours, the employee’s assertions are presumed to be true. The employee’s claims are taken as true by the court unless the employer can rebut it with documentary evidence. Even if the employee is incorrect, unless the employer can prove the actual number of hours, the employer will be responsible for a significant amount of backpay.