Time clock rounding can't favor the employer.

Position::From the Courts

Federal regulations say employees must be paid for all time worked, but it does still give you some room to round. You can keep time (and compute pay) based on rounding "to the nearest five minutes, or to the nearest one-tenth or quarter of an hour."

Key point: The timekeeping system must be neutral, permitting both upward and downward rounding. That means, on average, no employee loses pay and that, overall, the system is neutral or it favors the employee.

Recent case: The time clock at a healthcare firm rounded hours up or down...

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