Timeclock Rounding
 |
|||||||||||||||||||||||||||
 |
Compensation |
 |
|||||||||||||||||||||||||
 |
|||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||
 |
|||||||||||||||||||||||||||
Is there a “norm” when it comes to rounding for Hourly employees and a time clock? i.e. round to the nearest 15 minute interval, 7 minute interval, etc.? Are the standards differnet between Federal and State?
There is no universal norm for timeclock rounding. Most employers round an employees hours to the nearest 7 minutes or 15 minutes. Some computerized timeclock or payroll programs use tenths of an hour, or the nearest 6 minutes. An employer can calculate an employees hours to the minute, if they like, although this is very uncommon.
All of these systems are legal under both federal and state laws, as long as they are applied consistently to all employees.
Suppose an employer rounds to the nearest 15 minutes. When Jean clocks in at 8:07, her time is rounded down, and she is paid beginning at 8:00. When she clocks in at 8:09, her time is rounded up and she is paid beginning at 8:15. The philosophy is that as long as the employer uses this method all the time, it evens out. Sometimes Jean is paid for a few more minutes than she actually worked, and sometimes she is paid for a few less minutes than she actually worked.
However, if the employer used different methods at different times, to cheat employees, that would be a violation of the various state and federal minimum wage laws. Suppose when Jean clocks in at 8:07 her employer decides to round to the nearest 7 minutes. Jean would be paid from 8:07. However, the employer follows the 15-minute rule when Jean clocks in at 8:10. Instead of being paid from 8:07, Jean is paid from 8:15. This would be illegal under the various minimum wage laws, because Jean is always going to lose time this way.
In a few more years, this question probably will be obsolete. Most employers use computerized payroll programs that automatically calculate time.
2 Responses to “Timeclock Rounding”
Leave a Reply
-
Ask a Question
Categories
- Attendance Management (1011)
- Benefits (1493)
- Compensation (1583)
- Employment Training (308)
- Hiring and Staffing (800)
- Human Resources Management (2718)
- Labor Laws (1096)
- Management / Leadership Development (338)
- Performance Management (207)
- Structural Development (41)
- Termination (552)
- Workplace Health & Safety (254)
- Workplace Management (424)
Blogroll
Archives
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
- January 2008
- December 2007
- November 2007
- October 2007
- September 2007
- August 2007
- July 2007
- June 2007
Recent Posts
-
Comp time for salaried employees
March 11th, 2010 -
Meal Break Requirements
March 11th, 2010 -
Employee who will not sign a W4 form
March 10th, 2010 -
Do you have a form that employees sign after reading the company policy
March 10th, 2010 -
Converting from Paper to Digital
March 9th, 2010 -
Texas.Employee access to restroom
March 8th, 2010 -
Discretion to work from home rather than file for fmla
March 6th, 2010
Pages
November 19th, 2009 at 10:10 am
so is what my employer doing legal then? our work shift start at 6:00am but my employer tells us we must clock in early because clocking in at 6 on the dot would make us late to relieve the other shift. so we have to clock in early but no more then 12 minutes before the hour and then when our shift ends most employees clock out 8 minutes late because we do security so we have to wait to be relieved from our post etc but our employer also says we are not allowed to clock out any later then 12 minutes past the hour otherwise its illegal over time so if i clock out 2:12 I GET WRITTEN UP. i think i understand rounding but im confused also because i always clock in 5 minutes early every day 5:55 am and immediately start working and then clock out late every day 2:08 pm but my pay checks are always a straight 8 hours never 8 hours and 10 minutes etc. it doesnt matter what time i get there i only get paid for 8 hours even though im not on salary. i guess this would make since if an employee clocked in late and it would round the time up but i clocked in at 6 on the dot and was deducted 1/10th pay and written up for clocking in late. im not sure if it matters but we get a 20 minute lunch break paid because we are still considered working because we have our radios on us and arent allowed to leave the property. so is my employer rounding time or trying to get by on the de minimis rule because every morning we have to clock in check out our radios and keys or a vehicle and sometimes report to a guard shack so i guess they figure come in early to do those things and to relieve the other shift but then dont pay us for them?
November 19th, 2009 at 11:21 am
Hi Jessica! Yes, when you are required to clock in early to check the radios, etc. then you must be paid for that time. It is reasonable for the employer to round 5:55 to 6:00, but they need to round 2:08 to 2:15. The employer can require you to stop working at or before 2:12 pm. They cannot require you to keep working but clock out at 2:12. HTH, and thanks for reading the blogs!~ Caitlin