The exempt status is jeopardized when the time sheet is used to make improper deductions from the person’s salary. See DOL Fact Sheet #17G (http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17g_salary.pdf)

Note – I’m referencing federal law. I’m not sure if Texas has any laws to the contrary.

On the other hand, jst because it is legal, doesn’t necessarily mean it is a good idea. Some organizations will properly use the time sheet information to bill clients / customers. I’ve used it (rarely) for first line supervisors because they are expected to set a good example for their team. They can’t effectively discipline their team for excessive tardiness, when they are just as guilty. But most exempt employees work whatever hours it takes to get the job done, which is often more than the 40 hours per week the salary is allegedly based on. If they aren’t putting in the necessary hours, we’ll see it in their performance. If we make exempt employees track their time without a good business reason, they’ll develop an “8-5 mentality” and stop putting in the extra hours when we need them.