Employers can legally round employee work time under certain conditions, but they must follow specific rules to ensure the practice is fair and compliant with federal and state wage law.
Rowdy Meeks Legal Group LLC can assess your wage claim if your employer is rounding time illegally.
What is Time Rounding?
Time rounding is the practice of adjusting an employee’s clocked-in and clocked-out times to the nearest set increment (such as 5, 10, or 15 minutes). For example, if an employee clocks in at 8:02 a.m., the employer may round the time to 8:00 a.m. or 8:05 a.m., depending on the rounding policy.
Federal Law on Time Rounding
The U.S. Department of Labor allows time rounding under the Fair Labor Standards Act (“FLSA”) as long as it meets specific criteria.
Rounding Must Be Neutral Over Time
The employer should not consistently benefit from time rounding while the employee loses out on wages for time worked. It must be applied in a way that, on average, neither party benefits unfairly.
Rounding Increments Must Be Reasonable
The FLSA states that three types of time clock rounding are allowed:
- 15 minutes
- Five minutes
- Six minutes
15-Minute Rounding
If an employer uses 15-minute increments, clock-in and clock-out times are rounded to the nearest quarter hour.
Example: If an employee clocks in at 8:07 AM, their time could be rounded back to 8:00 AM. If they clock in at 8:08 AM, it would be rounded up to 8:15 AM.
5-Minute Rounding
With 5-minute rounding, the employee’s time is rounded to the nearest 5-minute interval.
Example: If an employee clocks out at 4:02 PM, the time would be rounded to 4:00 PM. If they clock out at 4:03 PM, the time would be rounded up to 4:05 PM.
6-Minute Rounding
With 6-minute rounding, time is divided into tenths of an hour (6 minutes).
Example: If an employee clocks in at 9:03 AM, their time could be rounded to 9:00 AM. If they clock in at 9:04 AM, it would be rounded up to 9:06 AM.
Employees Must Be Paid for All Time Worked
Even with rounding, employers must ensure that employees are paid for all of the time they actually work. If rounding consistently results in employees losing time they work, the practice could be considered illegal.
When Time Rounding May Be Illegal
Rounding becomes illegal if it is used to deny employees pay for all hours worked, including overtime hours,
One-Sided Rounding: If the employer only rounds down, which consistently shortchanges the employee by shaving minutes off their worked hours, this is illegal.
Not Paying for Early or Late Work: If an employee starts working before their shift begins (but the time is rounded down), and the employer does not pay them for that extra work, this violates the FLSA and state law.
How To Protect Yourself From Illegal Time Rounding
Track Your Hours
Keep a personal record of your clock-in and clock-out times. If you notice a pattern of rounding that seems unfair or results in lost wages, you can bring it up with your employer if you feel comfortable doing so.
Review Pay Stubs
Compare your actual worked hours with what you are being paid for to see if there is a discrepancy due to rounding.
What to Do If You Suspect Illegal Rounding
An attorney specializing in wage and hour laws, like Rowdy Meeks Legal Group LLC, can help you determine if your employer’s rounding practices are legal.
Contact us today to learn whether employers can legally round employee work time.