Why do companies use rounding?

Historically, it simplified manual payroll calculations. In the digital age, it is less necessary but still used for shift alignment.

Is it legal to round down?

Only if you also round up. Using rounding solely to reduce hours worked is a violation of FLSA.

Compliance

What is Time Card Rounding?

Time card rounding is a payroll practice permitted by the FLSA where employee punch times are rounded to the nearest increment (typically 5, 10, or 15 minutes), provided it is neutral and does not favor the employer over time.

The 7-Minute Rule

1Choose a rounding interval (e.g., 15 minutes).
2Apply the split: Minutes 1-7 round down to the previous quarter-hour.
3Minutes 8-14 round up to the next quarter-hour.

Avoiding Wage Theft

Rounding rules must be applied impartially. Always rounding down (docking time) is illegal. The safest approach for modern businesses is to pay for exact time worked ('minute-to-minute').

Flexible Rounding Options

ClockIt supports various rounding rules (15-min, 5-min, none) but defaults to exact time tracking to minimize compliance risk.

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Frequently Asked Questions

Why do companies use rounding?: Historically, it simplified manual payroll calculations. In the digital age, it is less necessary but still used for shift alignment.
Is it legal to round down?: Only if you also round up. Using rounding solely to reduce hours worked is a violation of FLSA.

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