Rounding time
System
5,885 Posts
It is my understanding that when an employer allows an employee to clock in, say 5 or 10 minutes early, but still rounds their starting time to the closest hour, they must also do so on the other side of that hour. For example - staring time is 8am. Employee clocks in at 7:50am. The employer rounds that starting time to 8am and pays him accordingly. Now, lets say the employee clocks in at 8:07am. Isn't the employer obligated to round back to 8am and pay them as if they started at 8am? They may still be considered tardy for disciplinary purposes, but I thought that wage and hour rules require the employer to "round back" the same amount of time that they "round up". So if they allow clock in 10 minutes before the hour, but do not pay that time, they must also do that on the other side of the hour as well, paying the employee as if they clocked in at 8am, even though they clocked in at 8:10am. Anyone disagree with that interpretation of the rules?
A sizable bet is riding on this......
A sizable bet is riding on this......
Comments
I explain the reason for this in orientation as the time clock is near the front door, so by the time you clock in, put away your lunch, hang up your coat, get to your work station, say good morning to your buddy, and actually get to work, it's pretty close to your start time. (The time clock is about as far from any work station as it can be, but it is in the most central location, if that makes any sense.)
I have a feeling you're betting on the side of rounding the other side of the hour, and while I don't want you to lose, I also don't want to have a wrong policy on the books!
So, I guess we round on both sides. The only regs I've seen on rounding are about defining where you split the pay increment (e.g., if you pay only in 30 minute increments, then the 14th minute rolls back and 16th minute rolls forward.), but it's up to the employer to set the pay increments (at least in Missouri). But when you've got time clocks and pay by the minute (like servers in a restaurant), then no rounding would be needed. I'd hate to track work time in a 2400-minute (40 hours) per week unionized factory setting...! I mean, what if Joe Blow works 2396 minutes in his work week - does he lose benefits for that week since he's under that 40 hour cut off?
If we did not do this it would be unfair to the employee and it could also be considered timecard fixing (whatever that means).
The main idea they wanted to get across was that the DOL was okay with rounding as long as it was fair to the employee , consistent and on both ends.
Shirley L McAllister
AIM HR
Idaho
[email]smcallister@aimintl.com[/email]
If they work unauthorized overtime or come in early than it becomes an attendance issue and must be delt with as such.
We cannot deal with it through the timecard rounding as it is against the law and is seen by the DOL as timecard fixing.
Consistency is the key. If you round it must be both on the front end and on the back end.
Shirley
Also, most importantly, check with the state. I have found that some have rules that override the federal law (CT I know is one.)
I believe we are going to change to recording time from the minute of clocking in, and tell employees to not clock in before a few minutes before their shift and then discipline accordingly.
Now if I can get the automatic half-hour deduction for lunch straightened out . . . I see a lot of 12-14 minute lunches go by that no one else minds.
[url]http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_785/29CFR785.48.htm[/url]
and it says:
(b) Rounding practices. It has been found that in some industries, particularly where time clocks are used, there has been the practice for many years of recording the employees' starting time and stopping time to the nearest 5 minutes, or to the nearest one-tenth or quarter of an hour. Presumably, this arrangement averages out so that the employees are fully compensated for all the time they actually work. For enforcement purposes this practice of computing working time will be accepted, provided that it is used in such a manner that it will not result, over a period of time, in failure to compensate the employees properly for all the time they have actually worked.
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I think the last line is from where the opinion comes that it must be consistently applied and so that it is not always to the detriment of the employee and benefit of employer.