Round away! But, wait! Do you really know the rules?
Employee time rounding is a necessary and essential part of any business, especially one that employs workers with hourly shifts. It involves determining pay for hourly employees based on when they clock in and out. If an employee’s shift begins at 6:00 pm, for example, and he or she clocks in five minutes early, that time can be rounded up. The Department of Labor, under the Fair Labor Standards Act (FLSA), permits rounding of employee time either to the nearest five minutes, one-tenth or quarter hour. So, it is important to remember that ignoring the laws can lead to costly fines for unpaid compensation due to any employee.
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