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Our Workforce HR team receives HR questions from our clients on a daily basis and gives practical answers that can be applied by any HR pro in the same situation. Today’s question: What does the Fair Labor Standards Act say about rounding Employees’ hours up or down?

Question:

We just made the switch to a new timekeeping system for our nonexempt staff, and we’ll be rounding off hours worked, for pay purposes. Is there a rule about how to go about doing that?

Answer:

There is a rule, and it’s a bit complicated, says Workforce Solutions’ Employment Law attorney Jonathan Driggs.

Under the Fair Labor Standards Act (FLSA), you’re allowed to round off workers hours as long as the rounding doesn’t always favor the employer. In other words, over the course of time, the rounding should average out.

Specifically, the FLSA permits rounding employees’ hours “starting and stopping times to the nearest five minutes, or to the nearest one-tenth or quarter of an hour.”

A suggested approach: Round up and down based on a set increment. So, for instance, if a worker reports in at 7:38, start pay at 7:45. But if a worker comes on at 7:37, start pay at 7:30.

If you have further questions about how Workforce Solutions can help with your HR Questions, please contact us 866.637.3900

Heads up: If your firm has hourly employees who work through lunch or break periods, you could be at risk of being force-fed the lawsuit du jour.

In recent years, several state supreme courts have  ruled that employers can be held liable for up to four years of back pay and/or overtime for violations of  mandatory breaks. Ever since, there’s been a wave of employee lawyers around the country looking to cash in.

Two key steps for avoiding trouble:

1. verify your state laws on mandatory lunch and/or rest breaks, call Workforce Solutions Inc for a review of your employees
2. remind supervisors to insist non-exempt employees take their breaks, even if the employee says he or she wants to skip them.