Some employers use time clocks that round employees’ starting and stopping times to the nearest 5 minutes, or to the nearest one-tenth or quarter of an hour. The FLSA requires that rounding policies be neutral and that they average out so that the time worked by the employee is properly counted and the employee is fully compensated for all the time he or she works. Time clock rounding policies are not legal if that favor the employer the majority of the time.
Time clock rounding must be looked at in a historical context. Years ago, time keeping was computed manually. Individual workers would wait in line to punch in and punch out. Rounding became acceptable because of the imprecise method of tracking employee time. Today, however, most time keeping is done electronically and is ultra-precise. As a result, the historical reasons for rounding have greatly diminished. Although the practice is still lawful, many employers utilize rounding practices that negatively impact employee pay.
If your employer uses a time clock system that regularly results in you losing minutes worked, contact the Indiana employment law attorneys at The Law Office of Robert J. Hunt, LLC for a free confidential case evaluation.